In response to a lawsuit by New York’s Attorney General, Digital Currency Group (DCG), the parent company of insolvent cryptocurrency lender Genesis, has hired its first-ever chief legal officer.
DCG announced in a statement on Thursday that Aimie Killeen has been named as its new legal chief. She was Chief Legal Officer of software and payments company Billtrust before her appointment.
A statement states that she will take up her new position on May 1 and will be in charge of compliance, mergers and acquisitions, and international legal matters.
“We are happy to have Aimie join our leadership team as we carry out our expansion strategies and keep navigating the constantly changing industry landscape,” DCG CEO Barry Silbert said in a statement.
Legal Challenges Led to DCG’s Employment
Killeen worked for Australian legal firm Ashurst for nine years prior to joining Billtrust. She later rose to the position of senior attorney with financial services provider DirectCash. She was promoted to executive vice president at CardTronics, an ATM maker, following its acquisition of DirectCash.
The announcement coincides with DCG’s recent legal troubles. Following the failure of the FTX exchange, its subsidiary Genesis filed for bankruptcy in January 2023.
DCG Battles Accusations of Investor Fraud
A lawsuit alleging investment fraud is presently pending against the firm. CEO Silbert attempted to have the lawsuit brought by New York Attorney Letitia James dismissed last month. The October lawsuit, which was later enlarged, alleges that DCG misled investors connected to Gemini Earn about losses, cheating them out of $3 billion.
Furthermore, it claims that a promissory note between Genesis and the parent firm was used by DCG and Silbert to conceal financial irregularities.
The action seeks to recover any profits that were obtained illegally, compensate investors, and prohibit Gemini, Genesis, and DCG from engaging in financial investing activities in New York.
April 2024, Cryptoniteuae
