BTC PULSE
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
Play Now
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Regulation

DCG Proposes Consolidation of Class-Action Lawsuits to Avoid Conflicting Decisions

by Dan K
Jun 2, 2023 - 11:45 am
in Regulation
Christopher Koenig, legal counsel for Celsius Network, addressing the court at the reorganization hearing in New York.

Consolidating to Avoid Conflicting Decisions

In a letter to United States District Judge Stefan Underhill, Digital Currency Group (DCG) CEO Barry Silbert made a case for the consolidation of two class-action lawsuits. The venture capital firm and its CEO are facing allegations of losses during the crypto winter. The suits, according to the defendants, share the same facts, pose overlapping legal issues, and suggest near-identical class definitions.

The Letter to the Judge

The defendants informed Judge Underhill that they are working towards transferring the case from New York to Connecticut with U.S. District Judge Lewis Liman. Their argument lies in the necessity of consolidation to prevent inconsistent decisions and further judicial efficiency. According to the letter, the defendants plan to quickly move to consolidate both cases if the motion to transfer is granted.

Plaintiffs Contest the Move

The plaintiffs in Connecticut, however, are contesting this move. Their argument is that it’s premature to decide on consolidation before the New York case gets approved for transfer. The uncertainty of the nature and scope of the claims is expected to incite opposition from the plaintiffs in New York.

The Allegations

The lawsuit from Connecticut alleges that Silbert made deceptive transactions to hide signs of a $1.1 billion collapse after Three Arrows Capital started liquidation proceedings. Accusations of securities fraud through false or misleading statements are also thrown at the defendants.

DCG’s TradeBlock Closing Down Amidst Ongoing Suits

As these legal proceedings continue, DCG has made a strategic decision to close its prime brokerage subsidiary, TradeBlock. This decision comes amidst uncertain regulatory conditions for crypto in the United States and the state of the broader economy. The process of closing down officially began on May 31.

Conclusion

The move to consolidate two class-action suits against the Digital Currency Group and its CEO Barry Silbert is significant, potentially impacting the trajectory of these lawsuits and the precedent they set in the world of cryptocurrency. While DCG and Silbert argue for efficiency and avoiding conflicting decisions, plaintiffs contest it’s too early to make such a call.

In the meantime, the shuttering of TradeBlock, DCG’s prime brokerage subsidiary, signals the far-reaching effects of these suits and the broader uncertainties within the crypto space. As these matters unfold, stakeholders and the wider crypto industry will be watching closely, underscoring the ongoing legal and regulatory challenges faced by this rapidly evolving sector.

Tags: CryptocurrencyLawsuitRegulationUS
Dan K

Dan K

Dan K, the chief editor, is a visionary wordsmith, shaping narratives with finesse. His discerning eye for detail creates literary masterpieces.

Related Posts

FTX founder Sam Bankman-Fried looking solemn in a courtroom setting.

Former SEC Official Predicts Conviction for FTX Founder, Bankman-Fried

October 3, 2023

Former SEC Chief Stark believes the FTX founder may be convicted on charges, including fraud, given compelling evidence...

Sygnum Singapore’s MPI License - A Stepping Stone to APAC Market Expansion.

Sygnum Singapore Bolsters Crypto Offerings with Major Payment Institution License

October 3, 2023

Sygnum Singapore's MPI license from MAS propels its crypto brokerage services, marking a significant milestone towards APAC market...

Christopher Koenig, legal counsel for Celsius Network, addressing the court at the reorganization hearing in New York.

Celsius Network Eyes Court Approval for Restructuring, Aims to Repay Customers by Year-end

October 3, 2023

Embattled crypto lender Celsius Network is on track to obtain court approval for a restructure, eyeing the start...

Hong Kong skyline at dusk, symbolizing emerging hopes in rejuvenating East Asia's cryptocurrency market.

Hong Kong Fuels Hope for Rejuvenating Asia’s Dwindling Crypto Activity: Chainalysis Insights

October 3, 2023

Chainalysis pinpoints Hong Kong as a potential catalyst to rekindle East Asia's crypto activity, which plummeted post China's...

Press Releases

David Ferrucci next to the Elemental Cognition brand emblem.

BM Watson’s Lead Developer Secures $60M for New AI Venture, Elemental Cognition

August 18, 2023

David Ferrucci, has raised a remarkable $60M for his AI startup. The company brings forward two pioneering chatbot solutions designed...

pulse5

Amsterdam Gets with the Dutch Blockchain Days the Biggest Event of the Benelux in the Field of Blockchain, Crypto Currencies, NFTs and Other Web3 Developments

May 8, 2023

Discover the future of blockchain, crypto, NFTs, and Web3 at Dutch Blockchain Days, the largest event in Benelux.

pulse4

Korea Blockchain Week 2023 Set to Push the Boundaries after Record-Breaking 2022 Event

May 8, 2023

Korea Blockchain Week 2023 returns after a highly successful 2022 event, featuring leading experts and the latest trends in blockchain...

pulse3

Istanbul Will Be Hosting Eurasia’s Largest Blockchain Event Once again on May 8–11, 2023

May 8, 2023

Join Eurasia's largest blockchain event, the Blockchain Economy Istanbul Summit, May 8-11, 2023, and discover the future of financial technology.

View All
BTC-Pulse LogoTransparent

© 2023 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

©2023 BTC-PULSE – All right Reserved.

No Result
View All Result
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise