Genesis slapped with lawsuits amidst bankruptcy proceedings

Last Updated on 1 hour by John Piper

A new class action lawsuit was filed by creditors against Digital Currency Group (DCG), a cryptocurrency company, and its subsidiary Genesis Capital. This lawsuit claims violations of federal securities laws.

According to the complaint, Genesis crypto platform has engaged in unregistered securities offerings. This is a violation of securities laws. Conducting lending agreements and allowing contracts involving security without being exempt from registration under federal securities laws. The lawsuit alleges that Genesis also committed securities fraud by allowing lending agreements involving securities without qualifying for an exemption from registration under federal securities laws. The lawsuit claims that Genesis deliberately misrepresented its financial situation.

Genesis is currently undergoing its first bankruptcy hearings. It filed for bankruptcy on January 19, 2019. Genesis filed for bankruptcy a few months ago, after it stopped withdrawals on November 16, when it couldn’t allow withdrawal requests due to a lack in cash flow and difficult cryptocurrency market conditions.

SGT has a good reputation for handling major industry lawsuits. This includes a class action against Coinbase in March 2022. The firm has yet to confirm if Gemini (a New York-based crypto exchange) is involved in the lawsuit. Gemini co-founder Cameron Winklevoss stated that Gemini was working to take direct legal action against DCG and Silbert, as well as other people who ” are responsible for the fraud.”

Genesis faces significant legal and financial problems as it stands. The outcome of the bankruptcy proceedings and lawsuits following the explosion of FTX is being closely monitored by shareholders and the entire industry.

Coin Insider’s first article, Genesis is slapped by lawsuits amid bankruptcy proceedings appeared on Coin Insider.

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