DCG and two of its top executives, CEO and founder Barry Silbert and Soichiro “Michael” Moro, former CEO of DCG’s wholly owned trading unit Genesis, have asked lawyers to file documents to convince a judge to dismiss a civil fraud lawsuit filed against them by New York Attorney General Letitia James.
Genesis and Gemini have settled with the NYAG, but DCG, Silbert and Moro have countered the fraud allegations, calling the lawsuit “without merit.”
The lawyers argue that social media posts about Genesis’ “strong” balance sheet were not lies intended to defraud, but rather “corporate exaggeration.”
DCG lawyers wrote: "DCG did what a responsible parent company should do, providing advice, providing financial support, and in some cases reviewing and commenting on Genesis' communications." (CoinDesk)
Earlier in June, the New York Attorney General's Office filed a motion to oppose Digital Currency Group (DCG), founder and CEO Barry Silbert, and Soichiro "Michael" Moro, former CEO of Genesis, DCG's wholly-owned cryptocurrency trading unit, to dismiss the fraud case in March.