DCG seeks consolidation of class-action suits to prevent conflicting rulings.

The Digital Currency Group (DCG), a venture capital firm, and its CEO, Barry Silbert, have requested to combine two class-action lawsuits related to alleged losses during the crypto winter.

In a letter addressed to United States District Judge Stefan Underhill in Connecticut, the defendants argued that both cases are based on the same facts, have similar legal issues, and propose almost identical class definitions.

The defendants also argued that consolidating the cases would be necessary to avoid contradictory decisions and promote judicial efficiency. In the letter, the defendants informed Underhill that they had requested U.S. District Judge Lewis Liman to transfer the case from New York to Connecticut. The letter stated:

“The motion will be fully briefed no later than June 13, 2023, and, if Judge Liman grants the motion to transfer to this Court, Defendants intend to quickly move to consolidate both actions.”

Within the letter, the plaintiffs in Connecticut contested the move, arguing that it’s too early to decide before the case in New York is approved for transfer. They are also expecting the plaintiffs in New York to oppose the transfer because there is a lot of uncertainty in the nature and scope of the claims.

Related: DCG settlement with Genesis still undecided as 30-day mediation period proceeds

The lawsuit in Connecticut alleges that Silbert orchestrated a misleading transaction to conceal signs of a $1.1 billion implosion after Three Arrows Capital (3AC) started liquidation proceedings. The defendants face allegations of committing securities fraud for making misleading or false statements.

Amid the ongoing legal proceedings, DCG has decided to close its prime brokerage subsidiary TradeBlock. The firm stated that the decision was due to the state of the broader economy and the uncertain regulatory environment for cryptocurrencies in the United States. TradeBlock officially began the process of closing down on May 31.

Magazine: Get your money back: The weird world of crypto litigation

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