Genesis files new lawsuits against DCG, Barry Silbert to recoup billions for creditors
Crypto lender Genesis Global filed new lawsuits against its parent company Digital Currency Group, CEO Barry Silbert and other executives to recover billions of dollars worth of funds that allegedly were falsely taken away from the company in 2022.Both lawsuits accuse DCG and Silbert of improper business conduct in their handling of subsidiary Genesis and its funds during the company's most critical years leading up to bankruptcy.One lawsuit, filed in the Delaware Court of Chancery, accused Silbert and his associates of having "recklessly operated, exploited, and then bankrupted" Genesis through conducting fraud and self-dealing.It further claimed that Silbert and affiliates misrepresented the crypto lender's financial stability to customers to enrich themselves, DCG and Grayscale Investments. Grayscale, however, was not named as a defendant.With the Delaware lawsuit, Genesis is seeking to recover at least $2.2 billion in bitcoin, ether and other crypto and more that would be distributed to its creditors.Meanwhile, a separate lawsuit filed Monday in the Bankruptcy Court for the Southern District of New York claimed that DCG, Silbert and other insiders made fraudulent fiat and crypto transfers worth over $1 billion from Genesis, which it seeks to claw back.The alleged transfers include nearly $450 million sent to DCG across eight transfers; bitcoin, ether and other crypto worth over $297 million as of March 31, 2025, sent to another DCG-owned subsidiary, DCG International; and $34 million in falsely made tax-related payments.The New York suit claimed that DCG initiated the transfers when Genesis faced an "existential threat" stemming from an industry-wide downturn triggered by the Terra-Luna collapse. Even prior to the market turmoil, Genesis had $14 billion in outstanding loans and was insolvent by the end of 2021, the filing revealed."[Genesis] faced extraordinary systemic risk and had virtually no internal controls to mitigate that risk," the filing said. "In November 2021, outside consultant Oliver Wyman informed DCG and other insiders that Genesis faced serious risks that were unsustainable, but nothing was done to address those risks."Genesis filed for Chapter 11 bankruptcy in January 2023, which revealed that it had more than 100,000 creditors and potentially as much as $10 billion in liabilities. It completed its restructuring last August and began distributing over $4 billion worth of assets to remaining creditors. The Block has reached out to Genesis and DCG for further comments.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.