Genesis lawsuit documents exposed: DCG executives ignored risk warnings, leading to a surge in loans and causing a collapse

2025-06-25 16:24:44

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ChainCatcher news, according to Cointelegraph, the latest unsealed court documents from the cryptocurrency lending platform Genesis show that executives at its parent company Digital Currency Group (DCG) foresaw legal risks before Genesis's collapse but still ignored multiple risk warnings.

DCG Chief Financial Officer Michael Kraines shared a "war game" memo with former Genesis CEO to prepare for potential lawsuits. The documents also reveal that warnings issued by third-party risk consultants hired by DCG were ignored, leading to Genesis's loan scale ballooning from $4 billion to $12 billion. An "acquiescence culture" formed within Genesis, where employees were forced to prioritize DCG's interests.

Currently, Genesis is seeking to recover over $3.3 billion from DCG, Barry Silbert, and other insiders.

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