Digital Currency Group (DCG), a leading crypto conglomerate, has hired Barry Berke, a prominent trial lawyer who has represented high-profile clients and served as chief impeachment counsel for the U.S. House of Representatives, to defend itself against a civil lawsuit from the New York Attorney General (NYAG). The lawsuit accuses DCG, its subsidiary Genesis, and its partner Gemini of defrauding investors of more than $1 billion through a crypto-lending program.
Barry Berke: A Legal Heavyweight
Barry Berke is a partner and chair of the litigation department at Kramer Levin, a law firm based in New York. He is widely recognized as one of the leading trial lawyers and white-collar criminal defense attorneys in the country.
He has handled sensitive and high-profile cases involving Fortune 500 corporations, tech startups, politicians, celebrities, and public figures.
Berke has also been involved in several notable political and legal events in recent years. He served as chief impeachment counsel for the U.S. House of Representatives in both impeachment trials of former President Donald Trump.
Additionally, his representation of former New York City Mayor Bill de Blasio in multiple federal and local probes further solidifies his position as a top-tier legal strategist.
DCG: A Victim of Misguided Lawsuit
DCG argues that the lawsuit filed by the NYAG lacks merit as the firm has always tried to act with integrity in the industry.
Berke echoed these sentiments, adding that the lawsuit ignores DCG’s genuine efforts to advance its subsidiaries and the wider industry.
He stated:
“This misguided and meritless lawsuit proves the adage that ‘no good deed goes unpunished.’ We look forward to demonstrating that DCG and Barry Silbert should never have been sued.”
The NYAG’s investigation discovered that Gemini, in collaboration with Genesis, represented their “Gemini Earn” program as a low-risk investment. However, internal analysis demonstrated that Genesis’ finances were far riskier than portrayed.
Moreover, there were concerns about Genesis’ loans being inadequately secured, with a significant concentration tied to Sam Bankman-Fried’s Alameda Research.
Despite this, Gemini kept investors in the dark.
The primary objective of Attorney General James’ litigation is to permanently bar the accused firms and their executives from New York securities and commodities trading.
She also seeks to ensure that defrauded investors get their money back and confiscate any illicit profits.
