Judge Revives Fraud Claim Against Silbert, DCG in Genesis Yield Lawsuit

A federal judge has revived a fraud claim against Barry Silbert and Digital Currency Group (DCG) in a lawsuit over the failed Genesis Yield program.

The ruling, filed on Thursday in the U.S. District Court for the District of Connecticut, revises an earlier decision that dismissed state-law claims.

Judge Stefan Underhill agreed to reconsider these claims under the Class Action Fairness Act and allowed the New York common law fraud claim to move forward.

The class action centers on Genesis Yield, a lending program that let customers deposit crypto in exchange for interest payments.

Investors allege Silbert, DCG, and other defendants knowingly misled customers about Genesis' financial health and risk controls before it suspended withdrawals and later filed for bankruptcy in early 2023.