Enterprise capital agency the Digital Foreign money Group (DCG) and its CEO Barry Silbert have requested to consolidate two class-action lawsuits over alleged losses in the course of 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 almost equivalent class definitions.”
The defendants additionally argued that consolidating the instances can be essential to keep away from conflicting choices 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 will probably be absolutely briefed no later than June 13, 2023, and, if Decide Liman grants the movement to switch to this Court docket, Defendants intend to rapidly transfer to consolidate each actions.”
Throughout the letter, the plaintiffs in Connecticut contested the transfer, arguing that it’s untimely to determine earlier than the case in New York will get accepted for switch. They’re additionally anticipating the plaintiffs in New York to oppose the switch as a result of there may be a variety of uncertainty within the nature and scope of the claims.
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 continued fits, DCG has determined to close its prime brokerage subsidiary TradeBlock. In accordance with the agency, the choice stems from the state of the broader financial system and the unsure regulatory surroundings for crypto in the US. TradeBlock formally began the method of closing down on Might 31.