Latest news with #DCG
Business Wire
24-06-2025
- Business
- Business Wire
Unsealed Delaware Complaint Highlights Extensive Allegations Against DCG, Barry Silbert, and Insiders
NEW YORK--(BUSINESS WIRE)--The Genesis Litigation Oversight Committee ('LOC') today announced the public release of a fully unredacted version of its previously filed Delaware Court of Chancery complaint ('Delaware Complaint'), which lays out important evidence against Digital Currency Group Inc. ('DCG'), its CEO Barry Silbert, and a network of insiders accused of fiduciary breaches and fraud at Genesis Global Capital ('Genesis') while the company was insolvent. Today's news follows the LOC's announcement on May 19, 2025, that it had filed two major lawsuits against DCG, Barry Silbert, and a network of insiders. This release introduces internal emails, strategy memos, and risk assessments into the public record, exposing how insiders allegedly looted Genesis in its final months while misleading customers. 'After working tirelessly to reveal the details of what happened at Genesis in the lead-up to its bankruptcy filing, the LOC's efforts are now fully accessible to the public,' said Philippe Selendy of Selendy Gay. 'The Delaware Complaint alleges that Silbert and his insiders exploited Genesis for their own benefit, and internal DCG and Genesis documents that are now available provide more detail than ever seen before.' 'These are not merely technical disputes over intercompany accounting,' said the Genesis Litigation Oversight Committee. 'The Delaware Complaint exposes a deliberate scheme by DCG and Barry Silbert to pillage Genesis as it collapsed—siphoning value for insiders while leaving creditors fully out to dry. The level of coordination, secrecy, and callousness alleged is nothing short of breathtaking, and we are pleased that this evidence is now available to the public.' Through extensive documents from the files of DCG and Genesis—ranging from internal emails to scripted talking points—the unredacted Delaware Complaint paints an even more vivid picture of DCG and Silbert treating Genesis as its 'de facto treasury' to finance below-market loans to favored insiders and related entities while also fueling leveraged trading in GBTC by counterparties such as Three Arrows Capital ('3AC') without due regard for the extreme risk to Genesis. Among the most damning revelations, the Delaware Complaint alleges: Internal awareness and recognition that Genesis was DCG's alter ego DCG Chief Financial Officer Michael Kraines admitted that DCG's operation of Genesis could allow a future plaintiff to argue that Genesis was DCG's alter ego. In an internal memo, he wrote to Moro and others to pose a 'war-gaming exercise' addressing the arguments the plaintiff would make if Genesis went bankrupt, which closely track the allegations in the Delaware Complaint: 'The question on my mind simply put is 'if Genesis were to somehow blow itself up could that somehow tank DCG to the profound detriment of its board and shareholders?' My prefatory thinking here is as follows: Let's assume that something catastrophic happens and Genesis faces deep pocketed creditors who are very unhappy and more than willing to retain expensive litigators. Our baseline assumption is that the plaintiffs' counsel will sue DCG in this event under some version of a piercing the corporate veil theory. Our purpose is to war game this and mitigate the risk. In our hypothetical, plaintiffs' counsel makes the following arguments (this is just top of mind – not researched): Yes there is a Genesis contract that says that DCG and related entities aren't liable but that's just boilerplate/adhesion contract stuff that pales in the face of the other facts. Genesis is the puppet of DCG. It is 100% owned and controlled by DCG and does what DCG tells it to do. Discovery of emails will be produced to support this. Genesis is very clearly undercapitalized as an entity. There is not enough equity to support a multi-billion dollar loan book and global trading operation given all of the volatility and risk around this untamed crypto sector. Genesis is managed by super evil traders who naturally know all of this. Agents of Genesis (salespeople) have explicitly told customers and potential customers that Genesis is backed by DCG as a material inducement to getting them to do business with Genesis. Plaintiffs detrimentally relied upon the DCG name and backing when making their decision to place their sacred trust in Genesis as a counterparty. Witnesses will be produced to testify that that is the case. Net net the entire DCG/Genesis enterprise was in reality a single enterprise acting in close coordination to lure the less suspecting keepers of capital for widows and children into transacting with them. Clearly as a result DCG and its other subsidiaries must be held responsible for any harm done by Genesis.' DCG hired third-party consultants and ignored recommendations or implemented them too late DCG admitted internally that Genesis was 'flying blind' in terms of risk management as Genesis's loan book grew from approximately $4 billion to $12 billion Genesis's external auditor informed DCG of significant deficiencies and material weaknesses in Genesis's financial controls and the consequences of not addressing them as early as 2020 DCG established a 'contagion' risk committee within Genesis, which was 'designed to redress the series of current vulnerabilities to likely plaintiff attacks.' When the first risk committee meeting was scheduled nine months after it was established and approved by the DCG Board, Kraines joked that his 'future deposition just got a bit easier.' DCG created a culture where Genesis employees were forced to prioritize DCG's interests As one Genesis employee aptly put it, in 2022, DCG kept Genesis alive 'so [it] could pillage the balance sheet … prop [Genesis] up, give [the] impression of stability[,] then borrow while they c[ould] to get the cash out of it.' Given DCG's pervasive control over Genesis, DCG was able to instill a culture where 'Genesis employees were forced to prioritize DCG's interests.' Genesis insiders referred to their office culture as a ''culture of submission,'' whereby Genesis 'acquiesced to all of DCG's demands.' Scripted falsehoods disseminated to the public about the health of Genesis DCG required Genesis employees to recite DCG-approved misrepresentations to customers when answering questions about Genesis's financial state in the wake of the 3AC collapse. Silbert further publicly posted on social media about the health of the company Tweet by Genesis on June 15, 2022, retweeted by Barry Silbert: 'Despite continued heightened market volatility, the Genesis balance sheet is strong and our business is operating normally. Our leading business continues to meet client demand. Our trading business remains an essential liquidity provider in the spot and derivatives markets.' Evidence of the alleged fraudulent activity preferential transfers, demonstrating that DCG's alleged wrongdoing was timed to watershed moments in the crypto space that impacted Genesis Further details on the infamous June 30, 2022, Promissory Note Further details on the September 2022 roundtrip transaction Accessing the Unredacted Delaware Complaint The unredacted Delaware Complaint is now available on the Delaware Court of Chancery's public docket and can be downloaded directly from the LOC's website at Advisors Selendy Gay PLLC is serving as legal counsel, BRG is serving as financial advisor, and C Street Advisory Group is serving as strategy and communications advisor to the LOC. About the Genesis Litigation Oversight Committee The Genesis Litigation Oversight Committee (the 'LOC') is an independent, volunteer-driven body authorized by the court and elected by creditors. It was established to represent the interests of all Genesis creditors and pursue meaningful recovery—with a focus on reclaiming value through in-kind asset recovery. The LOC oversees litigation against Digital Currency Group, its CEO Barry Silbert, and key advisors. Comprised of experienced fiduciaries and legal professionals selected by creditors, the LOC is committed to exposing the misconduct that led to Genesis's collapse and recovering billions in misappropriated assets for the benefit of all creditors. Please visit for more information and follow its official X account for the latest updates on litigation developments and recovery efforts.
Irish Independent
02-06-2025
- General
- Irish Independent
Wexford student's ‘perseverance and creativity' results in outstanding first place in Ireland
New Ross Standard Today at 20:00 A Wexford student has been commended for his outstanding achievement having received top marks in last year's Design and Communication Graphics (DCG) Leaving Certificate exam. Staff and parents of CBS New Ross gathered recently to celebrate Shane Duhig, who was awarded joint-first in the state examination. Speaking about the achievement, school principal, Sarah Rice said: 'We are immensely proud to celebrate Shane's incredible accomplishment, which places him among the very best in the country and reflects his exceptional talent, creativity and dedication.' Ms Rice added that Shane's success is a testament, not only to his hard work and commitment, 'but also to the support and guidance of his teachers, Ms Mary O'Hanlon and Ms Ellen McCarthy, who nurtured his skills and passion for design throughout his time in CBS New Ross. Their expert teaching and encouragement helped Shane develop the precision, problem-solving ability and visual communication skills that DCG demands.' This national recognition is a source of 'great pride for the school community' and, Ms Rice stated that achievements as such 'highlight the standard of teaching and learning at CBS New Ross'. "Shane's achievement serves as an inspiration to all students, showing what is possible through perseverance and creativity. We warmly congratulate Shane, his family, Ms. O'Hanlon and Ms. McCarthy on this remarkable success,' concluded Ms Rice.
Business Wire
29-05-2025
- Business
- Business Wire
DCG Poll Reveals 75% of Americans Favor Decentralized AI's Open Innovation Over Centralized AI
WASHINGTON--(BUSINESS WIRE)--DCG, a global investor, builder, and incubator of decentralized ecosystems, today unveiled the results of a new study conducted in partnership with The Harris Poll, revealing that 75% of consumers believe decentralized AI is more likely to support innovation and progress than centralized AI. 1 The survey, which polled 2,036 U.S. respondents, including registered voters and AI users, provides insight into growing sentiment favoring decentralized approaches to artificial intelligence, signaling strong support for the emerging sector of decentralized AI (deAI). 'This research makes it clear: there's strong public support for policies that both protect innovation and keep pace with where the world is headed. Three-quarters of Americans agree that the transformative power of AI would benefit more people if it wasn't consolidated in the hands of a few major players,' said Julie Stitzel, Senior Vice President of Policy at DCG. 'Just as we've done in digital assets, we're committed to working hand-in-hand with policymakers to shape thoughtful, balanced rules that foster the growth of decentralized systems, which are opening access to intelligence in the same way that the internet first opened access to information.' The poll is released alongside the DCG Fly-In, a two-day event held last week in Washington, D.C., bringing together DCG, its portfolio companies, and key U.S. lawmakers to discuss decentralized AI, privacy, energy, and pending market structure and stablecoin bills. During the event, DCG co-hosted a deAI briefing with the bi-partisan House Congressional Crypto Caucus, and one Fly-In participant testified before the House Natural Resources Subcommittee of Investigations and Oversight about decentralized solutions for AI energy challenges. DeAI is a model combining artificial intelligence with blockchain technology to democratize access, enhance transparency, and ensure privacy in AI systems, which was Americans' single largest concern with AI according to polling data. Unlike traditional AI controlled by a few large entities, deAI offers economic incentives and distributes control to contributors across a decentralized network such as Bittensor, enabling equitable access to AI systems' benefits and reducing risks such as bias and privacy concerns. "The public is calling for a new social contract with artificial intelligence: one where AI is governed openly, distributes value fairly, and gives people a meaningful stake in the systems that shape their lives,' said Tony Douglas, Co-Founder, Decentralized Research Center. 'Decentralization is no longer a fringe idea, it's a framework for building AI that reflects public values and a chance to avoid repeating the failures of the last tech era." Compelling findings from the survey include: Consumers are optimistic about AI's potential, but demand stronger personal oversight. 88% agree that if AI is using their personal information and data, they should have more control over what is being used. A majority of consumers (59%) agree that AI is becoming as essential as the internet, and that it should therefore be accessible to the public without heavy regulation. Public appetite is growing for AI beyond Big Tech's constraints. Big Tech companies are one of the least trusted groups when it comes to decision-making regarding AI use and development, surpassed only by elected officials. 77% of consumers see deAI as more beneficial to society overall than centralized AI. 1 72% would be more willing to use AI if there were more alternatives to the systems controlled and developed by Big Tech. Two thirds (67%) of consumers see centralized AI as more biased than deAI. 1 Voters are looking for alternatives to centralized AI. A majority of voters (56%) prefer deAI over centralized AI. A majority of both Republicans and Democrats prefer deAI over centralized AI. DeAI and decentralized systems are more favorable to consumers. 71% see deAI as more secure for consumers' personal data than centralized AI. 1 Three-quarters (75%) see deAI as more supportive of innovation and progress than centralized AI. A vast majority (86%) of Americans already see the benefits of AI in their daily lives, and 74% agree that they'd be more comfortable using AI if they knew they could benefit from the use of their personal data. A majority of AI users show preference for deAI over centralized AI. The complete survey findings, along with detailed analysis and recommendations, are available at DCG remains committed to collaborating with policymakers, community leaders, and stakeholders to foster a more inclusive and resilient financial system and is actively focused on the growth of decentralized ecosystems, including the decentralized Bittensor network through the recent launch of its subsidiary Yuma. Yuma supports early-stage teams building on Bittensor, providing capital, technical support, community access, and long-term collaboration to help launch and grow subnets. Through its accelerator, incubator, validator, and mining roles, Yuma helps shape a more open and accessible future for AI. DCG and Yuma own $TAO, the native token of the Bittensor ecosystem, and may hold interests in projects built on or supporting Bittensor and other deAI ecosystems. About DCG Founded in 2015 by Barry Silbert, DCG is a global investor, builder, and incubator committed to advancing decentralized ecosystems built on blockchain technology. As the most active investor in the space, DCG has backed over 250 early-stage technology companies across 40 countries and holds more than 70 token and digital asset investments. In addition to its investment portfolio, DCG is the parent company of subsidiaries including Grayscale, Fortitude Mining, Foundry, Luno, and Yuma. For additional information about DCG, visit The Harris Poll Method Statement The research was conducted online in the U.S. by The Harris Poll on behalf of Digital Currency Group among 2,036 U.S. adults aged 18 years or older. The survey was conducted between the 21st of April and the 25th of April. Data are weighted where necessary by age by gender, race/ethnicity, region, education, marital status, household size, employment, household income, political party affiliation, and voter registration status to bring them in line with their actual proportions in the population. Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within ± 3.0 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. All sample surveys and polls, whether or not they use probability sampling, are subject to other multiple sources of error which are most often not possible to quantify or estimate, including, but not limited to coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments. 1 Opinion of the general public when shown blinded descriptions of Decentralized AI and Centralized AI
Techday NZ
22-05-2025
- Business
- Techday NZ
Proofpoint acquires Nuclei to boost AI workplace compliance tools
Proofpoint has acquired Nuclei, a technology company specialising in compliance archiving and AI-driven data enrichment for workplace communications. The acquisition will see Proofpoint extend its digital communications governance offering with additional capabilities to capture, retain, and analyse communications data across collaboration platforms such as Microsoft Teams, Slack, Zoom, Webex, WhatsApp, and RingCentral Voice. Proofpoint has outlined that it will continue to support integration with a broad range of archive and data governance platforms, ensuring its connectors can deliver compliant interoperability for a wide variety of customer environments. Harry Labana, Senior Vice President and General Manager of Proofpoint's DCG Business Unit, said: "This acquisition enables us to accelerate our mission to deliver the most advanced and comprehensive AI-powered digital communications compliance platform in the market today, and we are excited to welcome Nuclei's talented team to Proofpoint. "By combining Proofpoint's leading human-centric security platform with Nuclei's pioneering technology, we can provide our customers with enhanced regulatory compliance while unlocking valuable insights from conversational data, which will be a game changer, particularly for highly regulated industries." The Nuclei platform offers several features for organisations, including the ability to capture and archive data from more than 100 applications. It can automatically collect messages, attachments, and metadata from a wide range of collaboration tools. AI transformation tools available through Nuclei include speech recognition in over 120 languages, real-time transcription, automatic translation, and video analysis. These functions are intended to help organisations derive actionable insights from their communication data. The platform is also designed for seamless integration with several major compliance archives, including Proofpoint, Smarsh, Global Relay, Arctera, and Microsoft Purview, to support organisations in meeting regulatory requirements. Nuclei's infrastructure is built on a serverless architecture on Amazon Web Services. It incorporates real-time compliance and security measures such as third-party audits by firms like Vanta, as well as end-to-end encryption that protects data in transit and at rest from capture through to storage. The value of human communication as a source of insight, process automation, and risk identification is a key area that Nuclei seeks to address by enabling capture, archiving, and analysis of communications data for intelligence extraction and compliance assurance. Eric Franzen, Chief Executive Officer of Nuclei, said: "At Nuclei, our mission is to democratise access to the world's most valuable data by transforming workplace communications into structured, compliant, and actionable information. "This vision has fuelled our innovation from the start. Partnering with Proofpoint allows us to extend that impact by helping the world's largest organisations boost productivity across hundreds of collaboration platforms while staying ahead of growing regulatory requirements." Proofpoint holds the status of a Leader in the 2025 Gartner Magic Quadrant for Digital Communications Governance and Archiving Solutions, based on completeness of vision and ability to execute.
Yahoo
21-05-2025
- Business
- Yahoo
Proofpoint Acquires Nuclei for Enhanced Communications Capture and Archiving Across Modern Workspace
Combined offering will boost compliance archiving while unlocking insights from conversational data across 100+ connected collaboration tools SUNNYVALE, Calif., May 21, 2025--(BUSINESS WIRE)--Proofpoint, Inc., a leading cybersecurity and compliance company, today announced the acquisition of Nuclei, Inc., a U.S.-based technology company specializing in compliance archiving and AI-driven data enrichment for modern workplace communications. With this acquisition, Proofpoint will further enhance its market-leading digital communications governance (DCG) offering with unmatched capabilities to capture, retain, and analyze communications across workspace collaboration platforms such as Microsoft Teams, Slack, Zoom, Webex, WhatsApp, and RingCentral Voice. In addition, Proofpoint will continue to support seamless integration with a broad range of archive and data governance platforms to ensure our connectors continue to deliver reliable, compliant interoperability across diverse customer environments. "This acquisition enables us to accelerate our mission to deliver the most advanced and comprehensive AI-powered digital communications compliance platform in the market today, and we are excited to welcome Nuclei's talented team to Proofpoint," said Harry Labana, senior vice president and general manager, DCG Business Unit at Proofpoint. "By combining Proofpoint's leading human-centric security platform with Nuclei's pioneering technology, we can provide our customers with enhanced regulatory compliance while unlocking valuable insights from conversational data, which will be a game changer, particularly for highly regulated industries." The Nuclei platform allows organizations to: Capture and archive data from hundreds of applications: Nuclei integrates with over 100 applications to automatically capture and archive messages, attachments, and metadata across collaboration tools. Unlock AI transformation with AI data enrichment: The platform offers speech recognition in over 120 languages, real-time transcription, automatic translation, and video analysis, enabling organizations to derive actionable insights from their communication data. Seamlessly integrate with existing archive platforms: Nuclei supports seamless integration with major compliance archives, including Proofpoint, Smarsh, Global Relay, Arctera, and Microsoft Purview, ensuring that organizations meet regulatory requirements. Benefit from scalability and security: Built on a serverless architecture following Amazon Web Services best practices, Nuclei emphasizes real-time compliance and robust security measures, including third-party audits by firms like Vanta. It offers end-to-end encryption to protect data in transit, encrypting content from point of capture to storing in the archive. Human communication is a powerful source of insight, capturing thoughts, intentions, and shared knowledge that can drive behavioral understanding, process automation, and risk identification. Nuclei delivers a comprehensive platform that enables the capture, archiving, and analysis of this communication data—empowering organizations to extract actionable intelligence while ensuring compliance. "At Nuclei, our mission is to democratize access to the world's most valuable data by transforming workplace communications into structured, compliant, and actionable information," said Eric Franzen, CEO of Nuclei, Inc. "This vision has fueled our innovation from the start. Partnering with Proofpoint allows us to extend that impact by helping the world's largest organizations boost productivity across hundreds of collaboration platforms while staying ahead of growing regulatory requirements." Proofpoint has been recognized as a Leader in the 2025 Gartner Magic Quadrant for Digital Communications Governance and Archiving Solutions, based on its Completeness of Vision and Ability to Execute. For the full report, please visit: For more information on Proofpoint's DGC offering, please visit: Gartner, Magic Quadrant for Digital Communications Governance and Archiving Solutions, Michael Hoeck, Rizvan Hussain, Jeffrey Hewitt, 8 January 2025. GARTNER is a registered trademark and service mark, of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. About Proofpoint, Inc. Proofpoint, Inc. is a leading cybersecurity and compliance company that protects organizations' greatest assets and biggest risks: their people. With an integrated suite of cloud-based solutions, Proofpoint helps companies around the world stop targeted threats, safeguard their data, and make their users more resilient against cyber attacks. Leading organizations of all sizes, including 85 percent of the Fortune 100, rely on Proofpoint for people-centric security and compliance solutions that mitigate their most critical risks across email, the cloud, social media, and the web. More information is available at Proofpoint is a registered trademark or tradename of Proofpoint, Inc. in the U.S. and/or other countries. All other trademarks contained herein are the property of their respective owners. About Nuclei Nuclei, Inc. is a U.S.-based technology company specializing in compliance archiving and AI-driven data enrichment for modern workplace communications. Founded in 2019 and headquartered in Holmdel, New Jersey, Nuclei helps organizations capture, retain, and analyze communications across platforms like Microsoft Teams, Slack, Zoom, Webex, WhatsApp, and RingCentral Voice. Their platform ensures regulatory compliance while unlocking valuable insights from conversational data. More information is available at View source version on Contacts PROOFPOINT MEDIA CONTACT: Estelle DerouetProofpoint,
