What happened at DCG (Digital Currency group), while Larry Summers was a paid senior advisor between 2016-2022?
There was a lawsuit against Digital Currency Group (DCG) in 2022 against its CEO Barry Silbert, and DCG’s bankrupt subsidiary Genesis Global Trading for defrauding investors of more than $1 billion (now at over $3 billion), which implicated economist and former Treasury Secretary Larry Summers. The case began with allegations that DCG, along with its subsidiary Genesis Global Capital and cryptocurrency firm Gemini, defrauded over 230,000 investors
Summers resigned his position after the SEC and DOJ announced a probe into DCG. Afterward, Summers scrubbed his personal website of any mention of his time there thinking that would absolve him.
DCG had been under pressure when Genesis Global Capital, a major crypto lender and subsidiary of DCG, halted customer withdrawals in the wake of FTX’s collapse. Genesis, the DCG subsidiary, was a major trading partner with FTX, and had as much as $175 million of its assets stuck at the now bankrupt crypto exchange when it unraveled. The expanded case now includes claims that DCG, Genesis, and their executives defrauded investors of over $3 billion in total, with the OAG seeking more than $3 billion in restitution.
The BIG secret. The bankruptcy set precedent by valuing the Bitcoin and other crypto IN-KIND. USD valuation is irrelevant. it was @$20k then. These articles keep say $1-3B…it's much more than that now, particularly if you count the ETH and SOL on the books. Eat shit, derps!
GENESIS is the beginning!