Troubled cryptocurrency business Digital Currency Group (DCG) is dealing with more legal concerns as its subsidiary Genesis Capital got slapped with a new class action lawsuit.A group of Genesis lenders filed a securities class action (SCA)claim against DCG and its founder and CEO Barry Silbert, declaring infractions of the federal securities laws.The claim was filed by Connecticut-based law practice Silver Golub & Teitell( SGT)on behalf of people and entities who entered into digital asset lending contracts with Genesis. The law firm is known for dealing with major industry suits, including a class action fit filed against Coinbase in March 2022. The brand-new complaint versus DCG and Silbert declares that Genesis participated in an unregistered securities offering in offense of securities laws by performing financing agreements including securities without qualifying for an exemption from registration under the federal securities laws.The claim also alleges that Genesis committed securities scams through a plan to defraud prospective and existing digital property loan providers by making incorrect and misleading declarations. According to complainants, Genesis deliberately misrepresented the monetary condition of Genesis, violating section 10 (b)of the United States ‘Securities Exchange Act.” The scheme to defraud was performed, according to the grievance, in order

to cause potential digital asset lenders to loan digital possessions to Genesis Global Capital and to prevent existing loan providers from redeeming their digital properties,”SGT lawyers noted.Founded in 2015, DCG is a Connecticut-based crypto firm that functions as the parent business of several digital asset and blockchain-focused subsidiaries, consisting of Genesis, digital possession supervisor Grayscale Investments, crypto mining company Foundry and crypto media outlet Coindesk. DCG’s present CEO Silbert preserves a managing 40%equity stake in the firm and likewise works as chairman of its board of directors.The news comes amid Genesis going through its first bankruptcy hearings on Jan. 23 after the company declared insolvency on Jan. 19. The personal bankruptcy filing came a couple of months after Genesis stopped withdrawals on Nov. 16 as it ended up being not able to honor redemption requests in the middle of the bear cryptocurrency market.Related: Genesis eyes quick resolution to creditor conflicts and personal bankruptcy exit in May Gemini, a crypto trading platform founded by Winklevoss siblings, is one of the greatest lenders of Genesis, with the firm apparently owing$900 million

to Gemini’s customers. On Jan. 20, Gemini co-founder Cameron Winklevoss required to Twitter to declare that the firm has been preparing to take direct legal action against DCG, Silbert and”others who share obligation for the scams.”It seems unclear whether Gemini becomes part of the suit filed by SGT. The law practice did not instantly respond to Pandoraland’s demand to comment.