Genesis, a crypto lender, and its subsidiaries have thrown some serious shade at its parent company, Digital Currency Group (DCG), along with DCG CEO Barry Silbert and other bigwigs. They’ve gone ahead and filed not one, but two lawsuits against them, claiming that they slyly withdrew billions of dollars’ worth of crypto while the company was crashing and burning, all without letting the customers in on the secret.
The lawsuits, filed on May 20, 2025, seek to recover a whopping $3.2 billion in total across both cases. That’s a whole lot of moolah. In the first lawsuit filed in the Court of Chancery of the State of Delaware, Genesis is aiming to get back $2.2 billion. The second lawsuit, filed in the Bankruptcy Court for the Southern District of New York, is looking to recover over $1 billion. These guys aren’t playing around when it comes to getting their money back.
According to the filing in New York, money was swooped out of Genesis to pay off DCG, Silbert, and other insiders right before Genesis went belly up. The lawsuit alleges that these big shots knew the ship was sinking, but instead of warning the public, they decided to save their own skins by grabbing all the assets they could get their hands on. Genesis hit rock bottom in November 2022 when they stopped withdrawals and had to file for bankruptcy the next year. It’s a classic case of “every man for himself.”
