A prominent venture capital firm Digital Currency Group (DCG), in the crypto industry, along with its CEO Barry Silbert, have made a request to consolidate two class-action lawsuits related to alleged losses during the crypto winter.
In a letter addressed to United States District Judge Stefan Underhill, the defendants argued that both cases share similar facts, legal issues, and class definitions.
The defendants emphasized the need to consolidate the cases in order to prevent conflicting decisions and promote judicial efficiency. They also informed Judge Underhill that they had asked U.S. District Judge Lewis Liman to transfer the case from New York to Connecticut.
The defendants anticipate that if the transfer is approved, they will swiftly move to consolidate both actions by June 13, 2023.
However, the plaintiffs in Connecticut have contested this move, asserting that it is premature to decide before the case in New York receives approval for transfer.
They also expect the plaintiffs in New York to oppose the transfer due to uncertainties surrounding the nature and scope of the claims.
The lawsuit filed in Connecticut alleges that Barry Silbert orchestrated a deceptive transaction to conceal a $1.1 billion implosion following the initiation of liquidation proceedings by Three Arrows Capital (3AC).
The defendants are accused of securities fraud for allegedly making false or misleading statements.
Meanwhile, amidst the ongoing legal battles, DCG has made the decision to shut down its prime brokerage subsidiary, TradeBlock and officially commenced its closure process on May 31.
