DCG asks judge to consolidate class-action suits to avoid conflicting decisions

Enterprise capital agency the Digital Forex Group (DCG) and its CEO Barry Silbert have requested to consolidate two class-action lawsuits over alleged losses throughout the crypto winter.

In a letter despatched to United States District Decide Stefan Underhill in Connecticut, the defendants argued that each instances “come up from the identical information, current overlapping authorized points and suggest practically an identical class definitions.”

The defendants additionally argued that consolidating the instances could be essential to keep away from conflicting selections and promote judicial effectivity. Within the letter, the defendants knowledgeable Underhill that that they had requested U.S. District Decide Lewis Liman to switch the case from New York to Connecticut. The letter acknowledged:

“The movement can be absolutely briefed no later than June 13, 2023, and, if Decide Liman grants the movement to switch to this Courtroom, Defendants intend to shortly transfer to consolidate each actions.”

Inside the letter, the plaintiffs in Connecticut contested the transfer, arguing that it’s untimely to resolve earlier than the case in New York will get accredited for switch. They’re additionally anticipating the plaintiffs in New York to oppose the switch as a result of there’s lots of uncertainty within the nature and scope of the claims. 

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The lawsuit in Connecticut alleges that Silbert orchestrated a deceptive transaction to hide indicators of a $1.1 billion implosion after Three Arrows Capital (3AC) began liquidation proceedings. The defendants face allegations of committing securities fraud for making deceptive or false statements.

Amid the continuing fits, DCG has determined to close its prime brokerage subsidiary TradeBlock. In line with the agency, the choice stems from the state of the broader financial system and the unsure regulatory atmosphere for crypto in america. TradeBlock formally began the method of closing down on Could 31.

Journal: Get your money back: The weird world of crypto litigation