New York · California · The Block
Judge revives fraud claim against Barry Silbert, DCG in Genesis Yield suit
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A federal judge revived a fraud claim against Barry Silbert, Digital Currency Group and other defendants in an investor lawsuit over the failed Genesis Yield program, while allowing the case's federal securities claims to continue moving forward.
Key facts
- A federal judge revived a fraud claim against Barry Silbert, Digital Currency Group and other defendants in an investor lawsuit over the failed Genesis Yield program, while allowing the case's
- The ruling, filed last Thursday in the U.S. District Court for the District of Connecticut, revises an earlier February decision after plaintiffs argued the court had authority under the Class Action
- Judge Stefan Underhill agreed, bringing those claims back before reviving the New York common law fraud claim and dismissing or staying most other state consumer protection claims
- The class action centers on Genesis Yield, a lending program that let customers deposit crypto in exchange for interest payments
Summary
The ruling, filed last Thursday in the U.S. District Court for the District of Connecticut, revises an earlier February decision after plaintiffs argued the court had authority under the Class Action Fairness Act to consider their state-law claims. Judge Stefan Underhill agreed, bringing those claims back before reviving the New York common law fraud claim and dismissing or staying most other state consumer protection claims. The class action centers on Genesis Yield, a lending program that let customers deposit crypto in exchange for interest payments. DCG has previously called similar allegations "baseless" and said it would vigorously defend itself.