The Genesis Litigation Oversight Committee (LOC) has filed two lawsuits against Digital Currency Group Inc. (DCG), seeking recovery in-kind, including more than 1 million coins valued at approximately $2.1 billion owed to Genesis Global Capital as of Feb. 9, 2025.

The first lawsuit, filed May 13, 2025, in the Delaware Court of Chancery, also names DCG CEO Barry Silbert, former Genesis CEO Michael Moro, DCG advisor Ducera Partners LLC, and Ducera CEO Michael Kramer as defendants.

The second lawsuit, filed May 19 in the U.S. Bankruptcy Court for the Southern District of New York, seeks the recovery of $1.2 billion allegedly transferred to DCG, Silbert, and affiliated insiders. The lawsuit claims these transfers, made in the year leading up to Genesis’s bankruptcy, were orchestrated while Genesis was insolvent. It also accuses DCG of exploiting Genesis by extracting more than $34 million under a nonexistent ‘tax-sharing agreement’ obligation.

In a statement issued May 19, the LOC alleged that Silbert, DCG, and other executives disregarded prudent lending controls, fueling risky operations that benefited DCG and its subsidiary, Grayscale. The committee, which represents the interests of all Genesis creditors, asserted that these actions led to Genesis’s insolvency by Dec. 31, 2021.

“The Delaware Complaint reveals how the Genesis lending business fueled profits for DCG’s crown jewel, Grayscale, benefitting from Genesis’s catastrophic failure to implement the most rudimentary lending controls. DCG and Genesis are alleged to have operated as a single enterprise within Silbert’s crypto conglomerate, designed to generate profits for DCG, Silbert, and insiders using cryptocurrency provided primarily by Genesis creditors,” the LOC stated.

As previously reported by Bitcoin.com News, DCG, Genesis Global, and Gemini were sued by New York Attorney General Letitia James, who accused the firms of defrauding 230,000 investors out of more than $1.1 billion.

However, in its lawsuit, the LOC alleges that under Silbert’s control, Genesis falsely presented itself as a well-managed entity, while in reality, it had a massive hole in its balance sheet. The complaint further alleges that Silbert and his associates quietly withdrew assets from Genesis while simultaneously engaging in a misleading marketing campaign to reassure investors about the company’s financial condition.

Beyond allegations of misrepresenting Genesis’s financial position, the LOC also claims that the GBTC trade benefited DCG and Silbert via Grayscale, while harming Genesis and its lenders.

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