Genesis lawsuit exposes DCG\behind-the-scenes manipulation\planning and neglect risk warning
According to online reports, the latest unblocked litigation documents from cryptocurrency lending platform Genesis show that executives of its parent company Digital Currency Group(DCG) had foreseen legal risks before Genesis collapsed, but still ignored risk warnings from multiple parties. Michael Kraines, chief financial officer of DCG, shared a "wartime drill" memorandum with former CEO of Genesis in preparation for potential litigation. The documents also revealed that warnings issued by third-party risk advisers hired by DCG were ignored, causing the size of the Genesis loan to expand from $4 billion to $12 billion. A "culture of submission" has developed within Genesis, and employees are forced to prioritize DCG interests. Currently, Genesis is seeking to recover more than $3.3 billion from DCG, Barry Silbert and other insiders.
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