DCG hires lawyer involved in Trump impeachment proceedings to defend itself in New York

Digital Currency Group (DCG) has hired Barry Berke, an attorney who played a significant role in the impeachment proceedings against former President Donald Trump, to defend the company in a lawsuit filed by the New York Attorney General. Berke, who is a partner and chairs the litigation department at Kramer Levin, previously served as chief counsel to the U.S. House of Representatives during both of Trump's impeachment proceedings.

The lawsuit by New York Attorney General Letitia James alleges that DCG, its subsidiary Genesis (a crypto lending firm), former Genesis CEO Michael Moro, and DCG CEO Barry Silbert were involved in defrauding investors. Similar charges were also brought against crypto exchange Gemini in a separate lawsuit.

Barry Berke expressed his privilege in representing DCG in this case and labeled the lawsuit as misguided and meritless. He argued that the allegations against DCG and Barry Silbert were factually and legally incorrect, emphasizing DCG's good-faith efforts to support its subsidiary, clients, and the crypto industry.

The attorney general's complaint alleges that Gemini provided funds to Genesis as part of its Earn program, which were subsequently lent out to various counterparties. When bankruptcies in the crypto space resulted in defaults by Genesis, a substantial financial gap was created. DCG is accused of attempting to cover up this gap by falsely claiming it had absorbed the losses when, in reality, it had only issued a promissory note to its subsidiary Genesis.

The attorney general further claimed that Gemini had misled investors about its Earn program, and Genesis, DCG, and their executives had tried to hide over $1.1 billion in losses. Barry Berke will now work to defend DCG against these allegations.

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