Sokolowski v. Fraud: Case Files

The official archive of documents and updates for the litigation web of the Sokolowskis in their fight for justice against cryptocurrency fraud.

"We will devote the rest of our lives to this effort. We will pursue every cryptocurrency fraudster until we win, exhaust all appeals, end up in personal bankruptcy, or die. There will be no other outcome."

— Steve Sokolowski
On January 2, 2025, Steve and Christopher Sokolowski began their quest to recover their life savings from the fraudulent cryptocurrency companies and individuals who deceived them in 2022. While they are no longer rich because the defendants took their money, the advent of powerful AI systems has leveled the playing field for whose who cannot afford an attorney. The battle has expanded into multiple districts and multiple battles, with the Sokolowskis as both plaintiffs and defendants in the expanding litigation web. This site chronicles their battle, case by case.

The song Atlas In The Junkyard was inspired by Digital Currency Group, Silbert, and Moro.

Court Documents

1.  Sokolowski et al. v. Digital Currency Group, Inc. et al.

(Middle District of Pennsylvania 4:25-CV-00001-KM-PJC)

The primary action seeking to hold Digital Currency Group, Barry Silbert, and Michael Moro accountable for alleged misrepresentations regarding the solvency of Genesis Global Capital. This case argues that the defendants' actions constitute fraud and violations of consumer protection laws, leading to significant financial losses for the plaintiffs.

Current status: Awaiting ruling on motions to dismiss

2.  Sokolowski et al. v. Digital Currency Group, Inc. et al. (Connecticut)

(District of Connecticut, Case 3:25-cv-00870-VAB)

A protective action filed in the District of Connecticut to toll the statute of repose. This case mirrors the allegations of the Pennsylvania action and has been requested to be stayed, pending the outcome of the primary litigation. The Plaintiffs have stated they will voluntarily dismiss this case if the Pennsylvania case achieves a ruling on the merits.

Current status: All Plaintiffs and Defendants state they do not oppose the stay request; ruling pending

  • Plaintiffs' Motion To Stay Proceedings (Connecticut)

    Plaintiffs requested that the Connecticut court indefinitely stay the proceedings there in favor of the first-filed action in Pennsylvania. Alternatively, they request that the court dismiss the case without prejudice, with leave to refile. They state their desire that the Pennsylvania court hear the case to the merits, and state they will voluntarily dismiss the case if they win or lose in Pennsylvania.

  • Plaintiffs' Complaint (Connecticut)

    Plaintiffs filed an action in the District of Connecticut alleging the same facts as those litigated in the Middle District of Pennsylvania. The complaint's first section requests that the court stay or dismiss the case without prejudice, to toll the statute of repose. DCG has stated that it does not oppose this stay.

3.  United Brands and Marketing International S.a.r.l v. PROHASHING LLC

(Eastern District of Pennsylvania, Case 2:25-cv-03046-GAW)

United Brands and Marketing International, a Luxembourg company, represented by Bull Blockchain Law, sued PROHASHING LLC, owned by Christopher and Stephen Sokolowski. UBMI alleges that PROHASHING committed fraud by not paying Dogecoins owed to UBMI. Upon information and belief, the amount owed is greater than $2 million, originating from a time period between 2017 and 2021. PROHASHING has requested a jury trial in Pennsylvania. There is no evidence that this case is linked to DCG or Wells Fargo.

Current status: Answer due 2025-08-27

  • Complaint (UBMI)

    UBMI's complaint alleges breach of contract, unjust enrichment, conversion, fraud, and negligent misrepresentation of "an amount that cannot be ascertained without review of PROHASHING's internal documentation," but which it believes exceeds $2,000,000. The contract UBMI alleges was violated was not attached to the complaint.

4.  Digital Currency Group v. Falco, et al (New York Adversary Proceeding)

(Bankruptcy Southern District of New York, Case 25-01111-SHL)

Digital Currency Group filed an adversary proceeding in the Genesis bankruptcy case, arguing that the claims of the Sokolowskis and another Defendant, Vincent Falco, are derivative. The Genesis Wind Down Estate requests that the court dismiss the adversary proceeding, while the Sokolowskis take no position on the Estate's motion that requests dismissal.

Current status: Hearing on 2025-08-15 at 10:00am EDT; see https://www.nysb.uscourts.gov/ecourt-appearances to join; select "public/listen-only."

  • Limited Response and Statement of Neutral Position Regarding Debtors' Motion to Enforce, With Request for Targeted Procedural Relief and Reservation of Rights

    The Sokolowskis state that they take a neutral position on who has the right to enforce the Plan and whether DCG's adversary proceeding should be dismissed for lack of standing. They provide factual clarifications, request that no E-Mails be considered unless every message and its metadata is available, reserve a number of rights, and suggest a law-only briefing limited to the nature of the UTPCPL claim with an invitation to join all parties who would have an interest in that determination.

  • Debtors' E-Mail

    DCG attaches as an exhibit one E-Mail from Jennifer Selendy, alleging that the message is evidence that Selendy and the Debtors failed to object to DCG's efforts before changing their mind three seconds after DCG's adversary proceeding was filed.

  • Objection To Debtors' Motion To Enforce the Plan

    DCG argues that "any party" is entitled to enforce the bankruptcy Plan, and that the SDNY Bankruptcy Court has the power to enforce its own orders. It states that the Debtors' motion is "baffling," and argues that a series of E-Mails led DCG "to believe the Debtors supported the relief DCG sought," and accuses the Debtors of a "conspiracy theory."

  • Notice of Voluntary Dismissal Without Prejudice (Falco)

    Co-defendant Vincent Falco dismissed all of his claims against DCG. While the notice states that the dismissal is "without prejudice," most of the claims are now beyond the statute of limitations.

  • Debtors' Motion To Enforce the Plan Against Digital Currency Group, Inc.

    The Genesis Wind Down Estate argues that the adversary proceeding should be dismissed because the Estate has the sole authority to enforce its bankruptcy plan, that Digital Currency Group lacks standing, and that the direct/derivative issue is best addressed in other courts.

  • Memorandum of Law In Support of Motion For a Preliminary Injunction (Adversary)

    DCG requested a preliminary injunction to temporarily halt the Pennsylvania and Connecticut actions while the adversary proceeding is adjudicated.

  • DCG's Complaint (Adversary)

    Digital Currency Group filed a complaint, accusing the Sokolowskis and another Defendant, Vincent Falco, of asserting derivative claims that the Genesis Wind Down Estate has the sole authority to pursue. DCG seeks a permanent injunction to terminate the Pennsylvania and Connecticut actions.

5.  Wells Fargo v. Sokolowski (Account Closure Debt / UTPCPL violations)

(Centre County Court of Common Pleas, Case 2025-CV-1842-CI)

Wells Fargo Bank sued Stephen Sokolowski on the same day that DCG filed its adversary proceeding in New York. The alleged debt was accrued at the time Stephen received a payout related to Genesis in early 2023, nearly 2.5 years before the case was filed, and had been charged off. There is no evidence that this case is related to DCG or UBMI.

Current status: Stephen Sokolowski preparing UTPCPL and Fair Credit Reporting Act violation counterclaims for credit reporting violations and rewards program misrepresentations

  • Rewards Marketing (Evidence)

    Wells Fargo misrepresented its rewards programs as "Active Cash," with "cash" able to be "redeemed at an ATM," with no qualifications or fine print in its misleading marketing.

  • Complaint (Wells Fargo)

    Wells Fargo alleges Stephen owes a credit card debt. The alleged debt is related to a mass account closure Wells Fargo conducted against Stephen, Christopher, and others shortly after a payout from Jefferies Leveraged Credit Products LLC related to Genesis in early 2023. When Wells Fargo unilaterally closed the credit card accounts without prior notice, it did not honor its rewards programs and made negative credit reports. Wells Fargo did not bring this claim until the same day that DCG filed its adversary proceeding. Stephen intends to assert counterclaims of violations of the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL) and the Fair Credit Reporting Act (FCRA), as well as several affirmative defenses.

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