US judge rules DCG fraud case can proceed to trial

Planet Daily News: A judge in New York ruled that the civil securities fraud lawsuit filed by New York State Attorney General Letitia James against the cryptocurrency venture capital firm Digital Currency Group (DCG) and two of its executives can proceed to trial. In 2023, Letitia James sued DCG, its CEO Barry Silbert, DCG's now-bankrupt lending arm Genesis Global Capital, its former CEO Michael Moro, and the cryptocurrency exchange Gemini, accusing them of jointly concealing a massive $1 billion hole in Genesis's balance sheet caused by the collapse of Three Arrows Capital. However, they argued that the Department of Justice's lawsuit did not sufficiently meet legal requirements and was unlikely to go to trial. The court rejected this request, finding no issues with the Department of Justice's arguments. Previously, DCG and its executives again urged the New York Attorney General to withdraw the civil fraud lawsuit. (CoinDesk)