UPDATE DCG LAWSUITS: Digital Currency Group Makes Consolidation Request
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June 2, 2023 10:29 am
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Digital Currency Group (DCG) made headlines both late last year and this year due to its exposure to FTX. …
At the time, the firm claimed that the $175 million loss and the subsequent damage to Genesis, one of the subsidiaries of DCG, did not affect their market-making abilities.
It was widely reported that Genesis owed roughly $1 billion to Gemini customers, following the fallout from the collapse of FTX.
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Subsequently, DCG was sued by large swaths of its clients and now faces multiple class action lawsuits.
Most recently, lawyers for DCG have requested that Judge Stefan Underhill consolidate 2 class action lawsuits against the company into one preceding.
According to Coin Telegraph: “The defendants also argued that consolidating the cases would be necessary to avoid conflicting decisions and promote judicial efficiency. In the letter, the defendants informed Underhill that they had asked U.S. District Judge Lewis Liman to transfer the case from New York to Connecticut.”
The bevy of current class-action lawsuits is far from Digital Currency Group’s only troubles, according to Coin Telegraph and other outlets:
Digital Currency Group subsidiary TradeBlock is shutting down on May 31 amid broader economic challenges and an uncertain regulatory environment for crypto in the US. https://t.co/Nv0orlnH55
— Cointelegraph (@Cointelegraph) May 25, 2023
⚠️ #TradeBlock is shutting down!
The trade execution and prime brokerage arm of Digital Currency Group (@DCGco) will close down effective as of May 31st.
-> The state of the broader economy and prolonged crypto winter were cited as reasons behind the decision pic.twitter.com/6hQYSNRsZl
— CryptoPotato Official (@Crypto_Potato) May 26, 2023
Troubled cryptocurrency exchange Gemini is considering a forbearance option against the Digital Currency Group (DCG), which missed a $630 million repayment last week. pic.twitter.com/Vz1GlKf98s
— Eudora Bentham (💙,🧡) (@bentham_eudora) May 26, 2023
Bitcoin.Com touched on DCG’s other recent woes:
According to a DCG spokesperson who spoke with Bloomberg, Digital Currency Group (DCG) has decided to close its trading platform, Tradeblock, this month.
The Connecticut-based institutional trading platform, founded by Greg and Jeff Schvey in 2013, was acquired by crypto news outlet Coindesk in January 2021.
Tradeblock successfully raised $53.1 million across five funding rounds since its inception.
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