SGT SUBMITS AMENDED DEMAND FOR CLASS ARBITRATION AGAINST GENESIS GLOBAL CAPITAL, DIGITAL CURRENCY GROUP, AND DCG FOUNDER AND CEO BARRY SILBERT.

STAMFORD, Conn., Jan. 19, 2023 /PRNewswire/ -- SGT has submitted an Amended Demand for Class Arbitration (the "Amended Demand") to the American Arbitration Association ("AAA") on behalf of 19 clients and a putative class of similarly situated individuals who lent Genesis Global Capital ("Genesis") digital assets which Genesis refuses to return. SGT's 19 clients have over $2 million trapped at Genesis. The Amended Demand is available here: https://www.sgtlaw.com/cases/genesis-class-arb.

The Amended Demand builds on the allegations contained in SGT's original demand for class arbitration filed on December 30, 2022 (the "Original Demand"), which brought claims for (1) breach of contract and (2) violations of the federal securities laws. The Amended Demand adds a claim for Control Person Liability against DCG founder and CEO Barry Silbert and DCG. The addition of the Control Person Liability is based on allegations that Genesis, at the direction and subject to the control of parent entity DCG and Silbert, engaged in an unregistered securities offering via the Gemini Earn program. At all relevant times, the Amended Demand alleges, Silbert and DCG controlled the operations of DCG and Genesis, directed DCG and Genesis to engage in the transactions at issue via the Gemini Earn program, and made the decision not to register the transactions as required by the federal securities laws.

Since submitting the Original Demand, reporting has bolstered SGT's clients' allegations that Genesis has long been in breach of the Master Agreement and concealed that fact by misrepresenting Genesis' financial condition in order to maintain a facade of corporate solvency for its own financial benefit. The Amended Demand alleges that despite being insolvent, Genesis and DCG engaged in a campaign of misdirection and lies, failing to disclose Genesis' financial condition as required, and made misrepresentations concealing Genesis' financial condition. Genesis did this in order to induce customers to continue to lend millions of dollars of digital assets to Genesis they would not have otherwise lent. Genesis now refuses to return these assets to its customers, despite the termination of the loans pursuant to the Master Agreement.

Additionally, on January 12, 2022, the U.S. Securities & Exchange Commission filed an enforcement action (the "SEC Action") against Genesis alleging that Genesis engaged in unregistered securities offering via the Gemini Earn program by engaging in these lending transactions with non-accredited investors. The SEC Action seeks disgorgement of the proceeds of the transaction engaged in via the Gemini Earn program and civil penalties.

If you lent digital assets to Genesis and wish to learn more about your rights and the class arbitration described above, contact SGT Partner Ian W. Sloss at [email protected] or submit your information on our website: https://www.sgtlaw.com/cases/genesis-class-arb.

SOURCE Silver Golub & Teitell LLP