CoinDesk reported that Digital Currency Group (DCG), the owner of the bankrupt cryptocurrency lending entity Genesis Global Capital, has submitted a motion to dismiss the lawsuit filed by New York Attorney General Letitia James against the companies. DCG's founder and CEO, Barry Silbert, has also filed a motion to dismiss the accusations of concealing losses and cheating customers. The New York lawsuit, filed in October and expanded last month, alleges fraud involving $3 billion related to the collapse of crypto firms like Three Arrows Capital and FTX, with DCG accused of hiding losses.

DCG denies the claims, stating they are baseless and mischaracterized. The dismissal filing emphasizes misinformation in the market and highlights that DCG contributed over $1.4 billion in cash and assets to Genesis after the collapse of Three Arrows Capital in 2022.

DCG contests allegations of taking a 18,000 bitcoin loan from Genesis after the collapse, asserting it was an administrative repapering. Genesis had proposed a settlement with the New York Attorney General's office, but DCG objected, considering it an attempt to bypass U.S. bankruptcy law.

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