A US judge reinstated fraud charges against Barry Silbert and DCG.

According to Odaily Odaily, a judge in the U.S. District Court for the District of Connecticut has reinstated common law fraud charges brought by investors against Digital Currency Group founder Barry Silbert, DCG, and other defendants in the Genesis Yield lawsuit, while allowing the federal securities law charges in the case to proceed. This ruling amended an earlier court decision from February of this year. The plaintiffs had previously argued that the court had jurisdiction to hear their state-level claims under the Fair Class Action Act. Judge Stefan Underhill accepted this view and reopened the relevant state-level claims. This case revolves around the failed Genesis Yield lending program, which allowed users to deposit crypto assets and earn interest. Investors allege that Silbert, DCG, and other defendants knowingly misled customers before Genesis suspended withdrawals and filed for bankruptcy in early 2023, despite knowing the company's financial health and risk control issues. However, not all state legal charges were reinstated. The court dismissed consumer protection claims in four states and suspended claims in three others. Overall, the ruling brings the fraud liability dispute against DCG and Silbert back into focus. (The Block)