Crypto lender Genesis has filed two lawsuits against its parent company, Digital Currency Group (DCG), and its CEO Barry Silbert, accusing them of draining billions from the platform while concealing its impending collapse from customers.

Kraken has launched regulated crypto derivatives trading for users across the European Economic Area, bringing established futures products under the European Union’s financial rulebook, MiFID II.

South Korea is rolling out tougher anti-money laundering rules as it prepares to ease its long-standing ban on institutional crypto investment.

Top stories in the Crypto Roundup today:

• Genesis Sues Digital Currency Group, CEO Barry Silbert Over Alleged $3.2B Fraud
• UK to Mandate Crypto Firms Report Every Customer Transaction Starting 2026
• South Korea Tightens Crypto KYC Rules Ahead of Institutional Investment Ban Easing

Genesis Sues Digital Currency Group, CEO Barry Silbert Over Alleged $3.2B Fraud

Crypto lender Genesis has filed two lawsuits against its parent company, Digital Currency Group (DCG), and its CEO Barry Silbert, accusing them of draining billions from the platform while concealing its impending collapse from customers.

The bankrupt firm is looking to recover a total of $3.2 billion. One lawsuit, filed in Delaware’s Court of Chancery, targets $2.2 billion in alleged fraudulent transfers. The other, filed in New York’s bankruptcy court, seeks more than $1 billion it says was withdrawn to repay insiders in the year leading up to Genesis’ Chapter 11 filing.

According to the suits, Silbert and other DCG executives exploited their insider knowledge to pull their funds from Genesis while it was insolvent in a bid to recover all of their crypto and dollar loans before the platform suspended withdrawals in November 2022. The broader public, the filing claims, was “kept in the dark.”

Genesis and its creditors argue that the executives engaged in a “campaign of fraud and self-dealing,” leaving users short on billions worth of bitcoin, ether, and other tokens. The firm is also seeking a legal trust over any assets the defendants allegedly misappropriated during their time in control.

In a statement, a DCG spokesperson dismissed the lawsuits as “baseless” and “opportunistic,” asserting the company had acted in good faith throughout the Genesis bankruptcy negotiations. They vowed to fight the claims in court.

Kraken Launches Regulated Crypto Derivatives Trading Across Europe

Kraken has launched regulated crypto derivatives trading for users across the European Economic Area, bringing established futures products under the European Union’s financial rulebook, MiFID II.

The crypto exchange said that its perpetual and fixed maturity futures contracts, some of which already see up to $2 billion in daily volume, are now available to both retail and institutional traders in the region.

This rollout follows Kraken’s acquisition of Cyprus-based investment firm Greenfield Wealth earlier this year. That deal secured a license from the Cyprus Securities and Exchange Commission (CySEC), allowing Kraken to meet regulatory requirements for offering derivatives in the EU.

South Korea Tightens Crypto KYC Rules Ahead of Institutional Investment Ban Easing

South Korea is rolling out tougher anti-money laundering rules as it prepares to ease its long-standing ban on institutional crypto investment.

The country’s top financial regulator, the Financial Services Commission (FSC), announced that banks and crypto exchanges must apply stricter know-your-customer (KYC) checks on new institutional clients. These rules will require firms to verify the source of funds and the intended purpose of transactions in detail, the FSC said.

The updated compliance measures coincide with a policy shift set to begin in June. For the first time, registered crypto exchanges in South Korea will be permitted to sell user fees collected in digital assets. Certain non-profit organizations will also be allowed to liquidate donated crypto.

State of the Crypto by Top Tier Exchange Volume

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