Beleaguered Crypto Business DCG Hires Prominent Lawyer to Defend Against Lawsuit
Crypto business Digital Currency Group (DCG) has reportedly hired white-collar defense lawyer Barry Berke to defend against a civil lawsuit filed by the New York Attorney General. The lawsuit, filed last month, alleges that DCG, its subsidiary Genesis Global Capital, and crypto exchange Gemini Trust defrauded customers of $1.1 billion.
Berke, co-chair of the white-collar defense and SEC regulatory practice at Kramer Levin Naftaliz & Frankel, is known for his work on high-profile cases including the framework to impeach former President Donald Trump. DCG founder and CEO Barry Silbert expressed confidence in Berke’s experience and his ability to help fight the “baseless accusations” against the company.
DCG’s Legal Troubles and Industry Impact
DCG, with around 200 companies in its portfolio, is a major player in the crypto industry. However, it has faced legal troubles since last year’s industry downturn caused by the collapse of digital asset project Terra and FTX’s bankruptcy.
In addition to the recent lawsuit from the New York Attorney General’s office, DCG also dealt with the collapse of Genesis Global, its digital asset lender. Following bankruptcy, Genesis Global announced it would cease all operations last month.
Hot Take: DCG Fights Back Against Lawsuit Allegations
The hiring of prominent lawyer Barry Berke by DCG demonstrates the company’s determination to combat the allegations made in the civil lawsuit. With Berke’s experience in high-profile cases and white-collar defense, DCG hopes to defend its reputation and refute the claims of defrauding customers. As one of the leading players in the crypto industry, DCG’s legal troubles highlight the challenges faced by companies operating in this rapidly evolving space. The outcome of this lawsuit will have implications not only for DCG but for the entire industry, as it navigates regulatory scrutiny and strives to build trust with investors.
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