Genesis has launched a pair of lawsuits against its parent company, Digital Currency Group (DCG), and its CEO, Barry Silbert, accusing them of fraud, reckless mismanagement, and siphoning more than a billion dollars in value from the now-bankrupt crypto lender.
On May 19, the Delaware Court of Chancery unsealed a complaint detailing how DCG allegedly used Genesis as a corporate ATM, draining funds through self-serving loans and concealed transfers while presenting a false image of financial health.
Through their court-appointed Litigation Oversight Committee (LOC), Genesis creditors claim that over a million digital coins — worth approximately $2.1 billion — were funneled away, even as Genesis edged toward collapse.
As per the complaint, Genesis creditors are still owed approximately $2.2 billion worth of crypto assets, including 19,086 Bitcoin (BTC), 69,197 Ether (ETH), and over 17.1 million other tokens, along with significant unpaid fees and interest as of Feb. 9, 2025.
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