Digital Currency Group retained Barry Berke, an attorney who played a significant role in the impeachment of former President Donald Trump, to defend the company against a lawsuit filed by the New York Attorney General.
Berke is a partner and chair of the litigation department at Kramer Levin and served as chief counsel to the U.S. House of Representatives during both impeachment proceedings for Trump.
Last month, New York Attorney General Letitia James filed a lawsuit against DCG and its subsidiary, cryptocurrency lending company Genesis, and former Genesis CEO Michael Moro and DCG CEO Barry Silbert, alleging investor fraud.
James’s office also brought similar charges against cryptocurrency exchange Gemini.
Barry Berke stated, “It is a true honor to represent DCG in this case.”
“This misguided and baseless lawsuit proves that no good deed goes unpunished.”
It disregards and distorts DCG’s sincere efforts to support its subsidiaries, clients, and the industry.
“We look forward to demonstrating that DCG and Barry Silbert should never have been sued and that the allegations against them are factually and legally baseless.”
According to the complaint filed by the attorney general, Gemini lent Genesis money as part of its Earn program.
These funds were ultimately lent to counterparties, including Three Arrows Capital and Alameda Research.
Genesis was left with a $1 billion deficit when multiple bankruptcies in its industry led to defaults. To conceal this deficit, DCG claimed it had absorbed the losses when, in reality, it had only issued Genesis a promissory note.
The attorney general alleged that Gemini lied to investors about Gemini Earn and that Genesis, DCG, and executives attempted to conceal losses exceeding $1.1 billion.