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."
The song Atlas In The Junkyard was inspired by Digital Currency Group, Silbert, Moro, the Genesis Debtors' Litigation Oversight Committee, and Selendy Gay.
Copies of a document with inferences about alleged misconduct in the litigation web have been provided to two independent third parties, with instructions to be released to the media if Steve or Christopher Sokolowski are inexplicably arrested or criminally indicted.
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
Reply in Support of Soichiro “Michael” Moro's Motion to Dismiss Plaintiffs' Amended Complaint #
Defendant Moro replied, arguing that he cannot be held liable for a balance sheet provided to Plaintiffs a month after he resigned as CEO of Genesis, and that Plaintiffs failed to state a claim.
Reply Memorandum of Law in Support of Motion to Dismiss of Defendants Digital Currency Group, Inc. and Barry E. Silbert #
Defendants DCG and Silbert replied, arguing that Plaintiffs lack standing because the claims were assigned to a third party, and that Plaintiffs' equitable estoppel arguments fail.
Plaintiffs' Memorandum Of Law In Opposition To Defendants' Motion To Dismiss #
Plaintiffs responded to the dismissal motions, arguing (in part) that the Defendants are equitably estopped from asserting nearly all of their defenses due to their inconsistent conduct.
Memorandum of Law in Support of Soichiro "Michael" Moro's Motion To Dismiss Plaintiffs' Amended Complaint #
Defendant Moro filed to dismiss the case, arguing that Plaintiffs filed to state a claim entitled to consumer protection relief, and that he was not subject to personal jurisdiction.
Memorandum of Law in Support of Motion To Dismiss Defendants Digital Currency Group, Inc. and Barry E. Silbert #
Defendants Silbert and DCG filed to dismiss the case, arguing that Plaintiffs failed to state a claim entitled to consumer protection relief, and that they were not subject to personal jurisdiction.
Plaintiffs' First Amended Complaint #
Plaintiffs' amended complaint alleges that the Defendants serially misrepresented Genesis Global Capital LLC as a safe and solvent service, signed a fraudulent promissory note, and that the Plaintiffs relied upon the misrepresentations. They seek for damages then valued at $26,070,000.
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: Stayed on 2025-09-12. Status report or dismissal due when the Pennsylvania action concludes.
Plaintiffs' Reply In Support Of Motion To Stay #
The Sokolowskis reiterate their arguments supporting a stay, noting that DCG, Silbert, and Moro also agree to a stay.
Defendants' Response To Plaintifs' Motion To Stay Proceedings #
DCG, Silbert, and Moro argue that there are grounds to dismiss the Connecticut complaint, but acknowledge that all parties agree to a stay.
Plaintiffs' Motion To Stay Proceedings #
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: Awaiting transfer ruling; paused due to motions for extension of time
Brief In Support Of Defendant's Motion To Dismiss Or, Alternatively, To Transfer Venue #
PROHASHING moved to dismiss UBMI's complaint, stating that its filing in the Eastern District of Pennsylvania is improper because PROHASHING has no connection to that District and its Terms of Service enforce Centre County, Pennsylvania as the place for disputes.
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: Preliminary injunction hearing indefinitely postponed; awaiting court's next direction
Counterclaim Plaintiffs' Memorandum of Law in Opposition to Debtors' Motion to Dismiss the Counterclaim #
The Sokolowskis respond to the Debtors' motion to dismiss the counterclaim, arguing that there is a live controversy because the Debtors and DCG engaged in a coordinated plan to shield DCG from liability over multiple years.
Exhibits for Counterclaim Plaintiffs' Memorandum of Law in Opposition to Debtors' Motion to Dismiss the Counterclaim #
Sworn declarations, subpoenas, and E-Mails to the judge's chambers referenced in the opposition brief.
Debtors' Brief In Support Of Their Motion To Dismiss The Counterclaim of Stephen H. and Christopher H. Sokolowski #
The Genesis Wind Down Debtors move to dismiss the Sokolowskis' counterclaim, arguing that the Sokolowskis lack standing.
Reply Memorandum Of Law In Support of Motion for a Preliminary Injunction #
DCG posted its reply brief in support of the preliminary injunction. However, the preliminary injunction hearing was postponed indefinitely.
Request For Informal Discovery Conference #
On September 8, 2025, the Debtors sent four last-minute subpoenas, with a 3-day return date, just six days before the preliminary injunction hearing. The Debtors did not reply to the Sokolowskis when the Sokolowskis asked the Debtors to provide basic information about the witness. The Sokolowskis, following the court rules, asked for a conference to quash the subpoenas. The preliminary injunction hearing was indefinitely adjourned as a result.
Defendants' Memorandum of Law In Opposition to Motion For Preliminary Injunction #
The Sokolowskis oppose DCG's preliminary injunction motion. They argue primarily that the Pennsylvania claim is direct as a matter of law. In the alternative, they provide evidence that the Debtors and DCG led to the creation of the adversary proceeding, and that discovery is necessary to determine the nature of the behavior and who is involved in it, to support an "unclean hands" ruling.
Exhibits for Opposition to Motion For Preliminary Injunction #
A collection of exhibits referred to in the Sokolowskis' preliminary injunction opposition brief. Includes affadavits, X posts, and E-Mails.
Defendants' Answer, Affirmative Defenses, Counterclaim, and Request for Case Management Order #
The Sokolowskis answer DCG's complaint, and countersue co-defendants DCG and the Genesis Debtors, becuase they are "aligned with the requested relief." They argue that, by preventing a voluntary dismissal, the action will now reach the merits and end the "procedural gamesmanship" that the two parties have been playing.
Debtors' Reply Brief In Support of Their Motion to Enforce the Plan #
The Genesis Wind Down Debtors respond to DCG's opposition brief, arguing, among other reasons, that their strategy of negotation with who they term "creditors" was working and that no action was required. They included an E-Mail stating that DCG and the Estate are "aligned on the requested relief" (ending the lawsuit) against the Sokolowskis.
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.
Blog: Leveling The Playing Field
PROHASHING Closing To Protect Customers In Response to UBMI Lawsuit
Published: October 20, 2025The PROHASHING cryptocurrency mining pool is the latest casualty of the litigation web. In response to the UBMI litigation, it will close and wind down operations to protect its customers.
The Machine is Always Watching
Published: September 13, 2025GPT-5 writes a case-perfect brief, but all the models have their first predictive failure. The Genesis Wind-Down Debtors continue their collaboration with DCG against the Sokolowskis.
June Update: Discovering Discovery
Published: June 6, 2025This June update discusses how models' dramatic improvement has helped hold DCG, Silbert, and Moro accountable for their participation in the fraudulent scheme.
Announcement of the First o1 pro Guided Federal Litigation
Published: January 2, 2025The advent of artificial intelligence has leveled the playing field. In this case, it will allow justice to prevail.