Genesis Lawsuit Exposes DCG's "Behind-the-Scenes Manipulation" Scheme and Disregard for Risk Warnings

According to a report by Jinse Finance, newly unsealed court documents from the cryptocurrency lending platform Genesis reveal that executives at its parent company, Digital Currency Group (DCG), had foreseen legal risks before Genesis collapsed, yet still ignored multiple risk warnings. DCG’s Chief Financial Officer, Michael Kraines, had shared a “wartime drill” memo with Genesis’s former CEO to prepare for potential litigation. The documents also show that warnings from third-party risk consultants hired by DCG were disregarded, leading Genesis’s loan portfolio to balloon from $4 billion to $12 billion. An internal “culture of submission” developed within Genesis, with employees forced to prioritize DCG’s interests. Currently, Genesis is seeking to recover more than $3.3 billion from DCG, Barry Silbert, and other insiders.