Golden Finance reported that the New York State Attorney General's Office filed a motion to dismiss the fraud case filed in March by Digital Currency Group (DCG), founder and CEO Barry Silbert, and Soichiro "Michael" Moro, former CEO of DCG's wholly-owned cryptocurrency trading unit Genesis. The New York Attorney General's Office accused Genesis, DCG, Silbert and Moro, along with the cryptocurrency exchange Gemini, of defrauding investors by conspiring to cover up a huge $1 billion hole in Genesis' balance sheet caused by the bankruptcy of Singapore's crypto hedge fund Three Arrows Capital (3AC). The opposition motion reaffirmed its office's claim that "each of the DCG defendants" (DCG, Silbert and Moro) was well aware that they were suspected of committing fraud to make Genesis appear solvent, in violation of New York's strict anti-fraud law, the Martin Act. The Martin Act broadly prohibits any fraudulent business activities related to the purchase, exchange, promotion, advertising or sale of any securities or commodities.
