DCG CEO and founder Barry Silbert and Soichiro “Michael” Moro, CEO of Genesis, DCG’s wholly owned trading unit, are making a last-ditch effort to convince the SEC to dismiss New York Attorney General Letitia James’ civil fraud lawsuit against them. James accused Genesis and DCG of making “false assurances” on Twitter, claiming that DCG had absorbed Genesis’ losses from the collapse of 3AC. But rather than fill the $1 billion hole with a cash infusion, DCG temporarily covered it up with a promissory note promising to pay Genesis $1.1 billion at 1% interest over ten years. According to James, DCG never paid a penny under that promissory note. Genesis and Gemini have settled with the NYAG, but DCG, Silbert and Moro have been fighting back against the fraud allegations, calling the lawsuit "without merit," denying that the promissory note was a scam, arguing that it was fully vetted and legally binding, and that DCG transferred hundreds of millions of dollars in funds and assets to Genesis to fill the hole on its balance sheet. James countered that the tweets were "deliberately fabricated misrepresentations of existing facts" designed to mislead investors in violation of the Martin Act, New York State's strict anti-fraud law. (CoinDesk)