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US judge rules DCG fraud case can proceed to trial

Odaily News A New York judge has ruled that a civil securities fraud lawsuit filed by New York Attorney General Letitia James against crypto venture capital firm Digital Currency Group (DCG) and two of its executives can proceed to trial.
In 2023, Letitia James sued DCG and its CEO Barry Silbert, DCG's now bankrupt lending unit Genesis Global Capital and its former CEO Michael Moro, and cryptocurrency exchange Gemini, alleging that they worked together to cover up a huge $1 billion hole on Genesis' balance sheet caused by the collapse of Three Arrows Capital. However, they believed that the Department of Justice's lawsuit did not fully meet the legal requirements and it was impossible to go to trial. The court rejected the request, finding that the Department of Justice's arguments were not problematic.
Earlier news, DCG and its executives once again urged the New York Attorney General to withdraw the civil fraud lawsuit. (CoinDesk)

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