DCG claims that joining two lawsuits would help avoid contradictory rulings.
The Digital Currency Group (DCG) and its CEO, Barry Silbert, are seeking to amalgamate two class-action lawsuits tied to purported losses during the crypto downturn.
According to the letter directed to the US District Judge Stefan Underhill in Connecticut, the defendants claimed that both lawsuits “arise from the same facts, present overlapping legal issues and propose nearly identical class definitions.”
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What are Stablecoins, Altcoins & Wrapped Coins Explained!
Digital Currency Group underscored the need for unification to circumvent contradictory rulings and enhance judicial effectiveness. Moreover, the letter apprised Judge Underhill of their request to US District Judge Lewis Liman to relocate the case from New York to Connecticut. The letter read:
The motion will be fully briefed no later than June 13th, 2023, and, if Judge Liman grants the motion to transfer to this Court, Defendants intend to quickly move to consolidate both actions.
However, the move is being contested by the plaintiffs in Connecticut, who argue that it’s premature to rule until the New York case's relocation is approved. The plaintiffs anticipate resistance to the transfer from their New York counterparts, citing significant ambiguity concerning the nature and scope of the claims.
The Connecticut lawsuit claims that Silbert engineered a deceptive transaction to mask indicators of a $1.1 billion collapse following Three Arrows Capital (3AC) liquidation proceedings. The defendants are charged with securities fraud for allegedly making misleading or false statements.
As these lawsuits unfold, DCG has made the strategic decision to shutter its prime brokerage subsidiary, TradeBlock. DCG asserts that the decision is a reaction to the broader economic climate and the uncertain regulatory climate for cryptocurrencies in the United States.