A federal judge revived a fraud claim against Barry Silbert and Digital Currency Group in a class action lawsuit centered on the Genesis Yield program. The decision keeps the case alive after DCG had pushed to have it thrown out.
Genesis Yield was a lending program that let customers deposit crypto in exchange for interest payments. It worked like a crypto savings account — deposit your coins, earn yield. Then everything fell apart when Genesis collapsed alongside the broader crypto credit crisis in 2022.
Investors lost millions. The lawsuit alleges that Silbert and DCG misrepresented the risks and knew the program was on shaky ground before it went under. The judge found enough merit in those claims to let the fraud charge proceed past the dismissal stage.
This isn’t the first legal headache for DCG or Silbert. The company has been fighting multiple lawsuits and regulatory actions since the Genesis collapse. But having a fraud claim survive a motion to dismiss is a meaningful development. It means there’s enough evidence for a jury to hear the case.
No trial date has been set yet.
