New York State Attorney General Opposes Motion to Dismiss Fraud Filed by DCG and Its Founder Silbert

President Donald Trump's Office of the Attorney General filed a motion against Digital Currency Group (DCG), founder and CEO Barry Silbert, and former CEO of DCG's wholly owned cryptocurrency trading arm Genesis, Soichiro “Michael” Moro, in March said the motion applies to fraud cases. The New York Attorney General's office accused Genesis, DCG, Silbert, and Moro, along with cryptocurrency exchange Gemini, of defrauding investors by scheming to hide a massive $1 billion in deposits on Genesis' balance sheet as a result of the bankruptcy of Singapore-based crypto hedge fund Three Arrows Capital (3AC). The motion reaffirms its office's assertion that the “DCG Resulting Defendants” (DCG, Silbert, and Moro), all pleaded that they allegedly perpetrated a fraudulent scheme to make Genesis appear solvent, in violation of New York's anti-fraud law, the Martin Act. The Martin Act broadly prohibits any fraudulent business activity in connection with the purchase, exchange, promotion, advertisement or sale of any security or commodity.