Digital Currency Group (DCG) is facing serious legal scrutiny after New York Attorney General Letitia James filed a civil lawsuit against the firm on October 19. In order to combat the allegations, DCG has enlisted renowned litigator Barry Berke, who is well-known for having served as Chief Impeachment Counsel in the case against former President Donald Trump.
The lawsuit filed by NYAG Letitia James makes serious allegations against DCG, Genesis, and Gemini regarding the crypto interest-bearing program they launched in 2021. These allegations include failing to inform consumers of the considerable risks associated with the program, inadequate collateralization of loans, hiding over $1 billion in losses, and falsely communicating the financial health and stability of Genesis and DCG.
Barry Berke is a highly experienced attorney and part-time partner at Kramer Levin who chairs the litigation department. He has represented major corporations as well as tech companies and startups, and also served as Chief Impeachment Counsel in Donald Trump’s first impeachment trial. Berke has also represented former New York City Mayor Bill de Blasio in federal and local probes. He is described as “one of the foremost litigators in the U.S.” by Chambers USA.
Armed with Berke’s expertise, DCG is strongly challenging the NYAG lawsuit and asserting that it lacks merit given their good faith governance efforts. The firm is determined to prove that DCG and Barry Silbert should never have been sued.
The NYAG’s fraud lawsuit against DCG, Genesis, and Gemini is a major legal threat, as it accuses them of failing to disclose risks to investors. DCG is aiming to rebut claims of ill intent and deception in order to disprove the allegations. The coming months will determine whether DCG can successfully challenge the lawsuit or will face severe legal consequences.