Digital Currency Group requests litigation consolidation

Digital Currency Group requests litigation consolidation

Cryptocurrency company DCG is requesting to merge the two class action lawsuits.

Venture capital firm Digital Currency Group (DCG) and CEO Barry Silbert want to consolidate two class action lawsuits over alleged losses during the crypto winter. In the letter the firm sent to the US District Judge in Connecticut, it is stated that both cases are based on the same events and involve legally similar issues. In addition, defendants argue that case consolidation is necessary to speed up the judicial process and prevent conflicting decisions.

“The petition will be fully condensed by June 13, 2023 at the latest, and if Judge Liman grants this motion to refer to this Court, Defendants plan to take swift action to consolidate both cases.”

But plaintiffs in Connecticut argue that the move is premature. According to them, plaintiffs in New York are thought to reject this merger due to uncertainties in the nature and scope of the claims.

You may be interested in: DCG: Genesis settlement disrupted by new claims from creditors

The lawsuit, which was conducted in Connecticut, alleges that Silbert orchestrated a misleading transaction to hide signs of a $1.1 billion boom after Three Arrows Capital (3AC) began liquidation. Defendants for making misleading or false statements accused of committing securities fraud.

Amid ongoing lawsuits, DCG has decided to shut down its main brokerage subsidiary, TradeBlock. According to the firm, this decision is due to the current state of the economy and the uncertain regulatory environment around crypto in the United States. TradeBlock officially started the shutdown process on May 31.

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