Grayscale’s $33B IPO Faces Legal Turmoil as Genesis Lawsuits Target DCG
As Grayscale pursues a $33 billion initial public offering, legal challenges tied to the collapse of Genesis are casting a shadow over the deal, per .
Barry Silbert, founder of Digital Currency Group (DCG), is leading the effort to take Grayscale public even as lawsuits stemming from Genesis’s bankruptcy resurface. The offering is widely viewn as a potential milestone—the first major crypto asset manager to go public.
Genesis Litigation Resurfaces
In May 2025, the Genesis Litigation Oversight Committee (LOC) filed two lawsuits: one in Delaware’s Court of Chancery and another in the U.S. Bankruptcy Court for the Southern District of New York.
The Delaware Complaint accuses Silbert, DCG, and other insiders of treating an insolvent Genesis as DCG’s “treasury,” manipulating disclosures, and misusing creditor funds. The filing states:
“The Delaware Complaint alleges that Silbert and his group of insiders recklessly operated, exploited, and bankrupted Genesis.”
It further asserts that the LOC viewks “in-kind recovery of cryptocurrency for the benefit of Genesis creditors who entrusted their crypto assets to the company.”
The bankruptcy court filing aims to claw back over $1.2 billion in transfers made prior to Genesis’s collapse, including alleged improper payments under a “tax sharing agreement” that the LOC claims did not exist.
Silbert and DCG Respond
DCG and Silbert have moved to dismiss the LOC’s claims and maintain that they acted in excellent faith during a brutal downturn in crypto markets.
A DCG spokesperson said:
“The reality is that DCG and its advisers worked tirelessly to try and save Genesis and prevent its bankruptcy in the face of a catastrophic sector-wide downturn that resulted in many crypto failures and ultimately proved too much for Genesis to overcome, even with the assistance that DCG voluntarily provided.”
Even as Grayscale advances its IPO ambition, the legal cloud looms. Observers note that underwriters, institutional investors, and regulators will likely scrutinize how DCG and Grayscale managed conflicts, disclosures, and related-party risks.
Barry Silbert recently returned to Grayscale’s board as chairman, reaffirming his direct involvement in the listing.
Frank Chaparro of GSR described the planned listing as a potential “landmark debut.”
IPO Is Gaining Grounds
The IPO market is regaining momentum across both traditional and digital finance. , one of the city’s largest listings in years, aiming to boost visibility and unlock new growth. Chief Executive Marcelino Castrillo called the move a milestone, saying the bank has achieved “real scale” and now views “a significant opportunity to bring [its] offering to new types of customers.”
Elsewhere, , while valued at $75 billion.
