US judge reopens fraud lawsuit against Barry Silbert and DCG

On July 7, U.S. Federal Judge Stefan Underhill in Connecticut ruled last Thursday to reinstate investors 'common law fraud charges against Barry Silbert, DigitalCurrency Group (DCG) and other defendants in the GenesisYield project, while allowing federal securities litigation to continue. The ruling revised the February decision. Previously, the plaintiff argued that the court had the authority to hear state law claims under the Class Action Equity Act, and the judge accepted it. GenesisYield is a crypto lending product that allows customers to deposit digital assets in exchange for interest. Investors accused the defendant of deliberately misleading the public about Genesis's financial situation and risk control capabilities before suspending withdrawals and filing for bankruptcy in early 2023. DCG has previously called the allegations "baseless." Consumer protection claims in California, Florida and New York were suspended, while claims in four states, including Illinois, were rejected.