Genesis
Litigation Oversight Committee (LOC)

Overseeing Litigation. Pursuing Accountability. Representing Creditors.

Bringing Forward the Facts


The LOC has filed two complaints, a critical step to bring long overdue accountability to one of the most significant cases of breaches of fiduciary duty, fraud, and preferential transfers in digital asset history.

FULL DELAWARE COMPLAINT PUBLICLY AVAILABLE

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FULL DELAWARE COMPLAINT PUBLICLY AVAILABLE -

Delaware Complaint


Filed against Genesis’s parent company, Digital Currency Group Inc. (“DCG”), its CEO Barry Silbert, former Genesis CEO Michael Moro, DCG advisor Ducera Partners LLC (“Ducera”), and its CEO Michael Kramer.

Asserts claims of breach of fiduciary duty, fraud, and unjust enrichment against Silbert and other DCG and Genesis executives for abuse of Genesis at the expense of Genesis and its creditors.

Bankruptcy Complaint


Filed against Genesis’s parent company, Digital Currency Group Inc. (“DCG”), its CEO Barry Silbert, former Genesis CEO Michael Moro, DCG advisor Ducera Partners LLC (“Ducera”), and its CEO Michael Kramer

Alleges that preferential and fraudlent transfers—often timed around market flashpoints including the collapses of Terra-Luna, 3AC, and FTX—were orchestrated while Genesis was insolvent, and insiders knew the business was on the brink of collapse.

Delaware Complaint Highlights

Knowledge of Wrongdoing

  • "Kraines even admitted that a future plaintiff could argue that Genesis was DCG's alter ego. He wrote to Moro and others to pose a "war-gaming exercise" addressing the arguments the plaintiff would make if Genesis went bankrupt, which closely track the allegations in this Verified Complaint" (paragraph 53)

Breach of Fiduciary Duty

  • "Genesis did not have a separate, independent existence from DCG. This was no secret at DCG. Internal DCG communications exhaustively document DCG's understanding that Genesis was DCG's alter ego" (paragraph 53)

False Marketing Campaign

  • “DCG required Genesis employees to recite the Silbert lines to customers when answering questions about Genesis’s financial state in the wake of the 3AC collapse. These DCG-scripted falsehoods were designed to induce customers, counterparties, and lenders, including those of Gemini and Bitvavo, to keep their valuable crypto and fiat currencies on the Genesis platform and continue depositing more” (paragraph 12)

Fraudulent Accounting Cover-Ups

  • “Silbert, Kraines, and Murphy each aided and abetted Moro’s breaches of fiduciary duty to Genesis, including to act in the interest of Genesis and its creditors. Instead of acting in those interests, Moro knowingly failed to implement proper risk protocols, signed the commercially unreasonable Promissory Note, and knowingly permitted and participated in DCG’s campaign of lies directed at the public Genesis creditors” (paragraph 277)

DCG’s Alter Ego

“DCG’s compliant pawn, Genesis’s former ‘CEO’ Moro, unsurprisingly stood by and allowed DCG to pilfer Genesis; the Genesis employees who disagreed with Silbert or refused to do DCG’s bidding were terminated and faced Silbert’s influential wrath in the industry” (paragraph 8)

Systemic Control Failures

  • “Genesis was severely undercapitalized, lacked reasonable risk management, and had no board of directors or independent management of its own." (paragraph 1)

False Narrative, Real Losses

  • “Silbert and his cronies recklessly operated, exploited, and then bankrupted Genesis following a spectacular campaign of fraud and self-dealing. Silbert used Genesis to enrich himself and finance his broader cryptocurrency empire on off-market, unfair terms before overseeing its demise” (paragraph 1)

Bankruptcy Complaint Highlights

  • “Insider Defendants typically initiated their transfers around watershed events in the cryptocurrency industry…when the Insider Defendants knew through their close relationship with Genesis that its business was on the brink of collapse.” (paragraph 1)

  • “Throughout the year prior to Genesis’s bankruptcy filing, DCG and Genesis falsely reassured customers that Genesis’s balance sheet was ‘strong’ and that it had a ‘ton of liquidity’ to try to stave off the inevitable run on the bank.  Meanwhile, the Insider Defendants called their loans ahead of other creditors in aggregate amounts of USD and cryptocurrency worth over $1.2 billion as of March 31, 2025.” (paragraph 87)

  • “DCG and Barry Silbert worked to fend off a run on the bank at Genesis, falsely assuring Genesis’s customers that the business was ‘strong’ and had a ‘ton of liquidity.’” (paragraph 1)

Legal Documents