Digital Currency Group Hires Lawyer Involved in Trump Impeachment to Defend Against Lawsuit
Digital Currency Group (DCG) has hired lawyer Barry Berke, who played a key role in the impeachment of former President Donald Trump, to defend the company in a lawsuit filed by the New York Attorney General. Berke, partner and chair of the litigation department at Kramer Levin, previously served as chief counsel to the U.S. House of Representatives during both impeachment proceedings against Trump.
The Lawsuit and DCG’s Response
New York Attorney General Letitia James filed a lawsuit against DCG and its subsidiary Genesis, as well as former Genesis CEO Michael Moro and DCG CEO Barry Silbert, accusing them of defrauding investors. The lawsuit also targeted crypto exchange Gemini for similar charges.
“It is truly a privilege to represent DCG in this case,” said Barry Berke. “This misguided and meritless lawsuit proves the adage that ‘no good deed goes unpunished.’ We look forward to demonstrating that DCG and Barry Silbert should never have been sued, and the allegations against them are plainly wrong as a matter of fact and law.”
The Allegations Made by the Attorney General
According to the complaint filed by the attorney general, Gemini lent funds to Genesis as part of its Earn program. These funds were then lent out to counterparties, including Three Arrows Capital and Alameda Research. When multiple bankruptcies occurred in the space, causing defaults to Genesis, it was left with a $1 billion loss. The attorney general alleges that DCG attempted to cover up this loss by falsely claiming it had absorbed the losses when it had only made a promissory note to Genesis.
The attorney general also accused Gemini of lying to investors about Gemini Earn and claimed that Genesis, DCG, and their executives tried to hide over $1.1 billion in losses.
Hot Take: DCG Enlists Lawyer with Impeachment Background for Defense
Digital Currency Group’s decision to hire lawyer Barry Berke, who has experience in high-profile impeachment cases, reflects the seriousness with which the company is approaching the lawsuit filed by the New York Attorney General. By bringing in a lawyer with a strong legal background, DCG aims to defend itself against the allegations of defrauding investors. The outcome of this case will have significant implications for both DCG and the broader cryptocurrency industry. It remains to be seen how Berke’s involvement will impact the proceedings and whether it will help sway the outcome in favor of DCG.
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