DCG calls Genesis subsidiary’s agreement with the New York Attorney General’s Office “subversive”

Feb 22, 2024
Digital Currency Group (DCG) objects to the settlement agreement between the Attorney General of New York and the bankrupt Genesis company.

Recall that this month Genesis Global entered into an agreement with the Prosecutor General’s Office to drop charges of fraud. However, the parent company claims that this was not a proper settlement of the situation.

DCG stated in the lawsuit that Genesis cannot, under the guise of a settlement agreement, take funds from the lower classes and distribute them among privileged creditors.

In a statement from DCG, the company called the deal a behind-the-scenes attempt to circumvent U.S. bankruptcy law and described it as “disruptive”, concluded at the last minute and in secret.

Former deputy Attorney General and former senior federal prosecutor in New York, Jason Brown, supported DCG’s objection to the Genesis settlement agreement with the state.The Prosecutor General’s Office has not commented on this situation.

Last month, Genesis also settled a case with the State Department of Financial Services (DFS), agreeing to pay $8 million and give up its New York BitLicense.

Earlier this month, DFS expanded its arguments against DCG and Gemini, saying they were responsible for much larger investor losses. At the moment, they amount to $3 billion.