Creditors have filed a class-action lawsuit against Genesis Capital and its founder, Barry Silbert.
he Digital Currency Group (DCG) subsidiary filed for bankruptcy last month.
More:
- The lawsuit was filed by Connecticut-based law firm Silver Golub & Teitell (SGT) on behalf of creditors that argue that the company and its founder violated section 10(b) of the United States Securities Exchange Act.
- According to the complaint, Genesis engaged in unregistered securities by executing lending agreements without registering with regulators.
- Creditors also accuse the company of securities fraud by making false and misleading statements.
- Gemini, a crypto trading platform founded by the Winklevoss brothers, is one of Genesis' largest creditors.
- Genesis reportedly owes $900M to Gemini's clients.
- Gemini co-founder Cameron Winklevoss says the company is preparing for direct legal action against DCG, Silbert, and "others who share responsibility for the fraud."
