Digital Currency Group (DCG), a well-known venture capital firm in the crypto industry, and its CEO, Barry Silbert, are seeking to merge two class-action lawsuits regarding alleged losses during the crypto winter.
The defendants argued in a letter to Judge Stefan Underhill of the United States District that the lawsuits share similar facts, legal issues, and class definitions, and therefore need to be consolidated to avoid conflicting decisions and promote judicial efficiency. They also informed Judge Underhill that they have sought to move the case from New York to Connecticut and anticipate consolidating both actions by June 13, 2023, pending approval of the transfer.
However, the plaintiffs in Connecticut have opposed this move, stating that it is too soon to decide before the case in New York receives transfer approval. They also anticipate that plaintiffs in New York will contest the transfer due to uncertainties regarding the claims’ nature and scope.
The Connecticut lawsuit claims that Barry Silbert engaged in a deceptive transaction to conceal a $1.1 billion loss following liquidation proceedings initiated by Three Arrows Capital (3AC). The defendants are accused of securities fraud for allegedly making false or misleading statements.
Meanwhile, DCG has decided to shut down its prime brokerage subsidiary, TradeBlock, and started the closure process on May 31.
Compiled by Coinbold