Digital Currency Group (DCG) has submitted a request to the court to drop the legal action taken against it by New York Attorney General Letitia James. DCG argues that it’s “wrongfully” depicted and maintains that the lawsuit is nothing but a “thin web of baseless innuendo.”
Report: DCG, Barry Silbert Seek Dismissal of NYAG Lawsuit, Citing 'Baseless Innuendo' and Integrity in Operations
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
DCG Challenges NYAG’s Legal Action
Last year, the New York Attorney General (NYAG) Letitia James initiated legal proceedings against Gemini, Genesis, and DCG, alleging that these entities misled more than 230,000 investors.
More recent developments suggest Genesis is nearing a resolution with the NYAG, who has also expanded the lawsuit’s allegations. A recent report, highlighting a court document, submitted on Wednesday by lawyers representing DCG, seeks to have the lawsuit thrown out.
The NYAG lawsuit also names DCG’s founder, Barry Silbert, as a co-defendant. The lawyers, in their Wednesday submission, contend that DCG followed guidance from leading financial experts and maintained integrity throughout.
They argue that the case essentially rests on a “thin web of baseless innuendo,” accusing the NYAG of “wrongfully seeks to portray DCG’s good-faith support of a subsidiary as participating in fraud.” The legal team asserts DCG was extraneous to many of the lawsuit’s accusations and charges.
Moreover, they address the promissory note used as leverage, asserting it was “properly vetted” and “entirely valid.” The latest DCG update also comes in the wake of a settlement between Gemini and the New York Department of Financial Services (NYDFS).
What do you think about Digital Currency Group seeking to dismiss the NYAG lawsuit? Share your thoughts and opinions about this subject in the comments section below.
