Sokolowski v. Digital Gold: 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.
So long as the defendants continue to abuse the Federal court system, we will continue to seek to amend our complaints, and hold more and more people accountable for their actions. It is in their interest to start playing by the rules and stop making a mockery of our justice system.
We are not going away. Our escalation is a direct result of your obstruction of justice. Fight us fairly or we will pursue you into bankruptcy."
The song Atlas In The Junkyard was inspired by Digital Currency Group, Silbert, Moro, the Genesis Debtors' Litigation Oversight Committee, Jefferies, Andrew Glantz, Jennifer Selendy, and Vincent Falco.
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, Michael Moro, Andrew Glantz, Xclaim, Inc., Jefferies Leveraged Credit Products LLC, Jefferies Financial Group Inc., and Vincent Falco accountable for the fraudulent takeover of the Bitcoin protocol in the blocksize war, the decade-long campaign of harassment against Stephen Sokolowski, the destruction of the Sokolowskis' business PROHASHING, and the subsequent obstruction of justice and witness tampering.
Current status: Awaiting ruling on motion to stay and seeking counsel for PROHASHING
Order Approving Report and Recommendation #
The district judge issued a short order adopting the January 27 R&R.
Report And Recommendation #
The case was reassigned to Magistrate Judge Martin C. Carlson, who issued a sua sponte Report and Recommendation. The R&R recommends granting the requested stay, granting leave to amend, and denying DCG's, Silbert's, and Moro's motions to dismiss.
Motion for Leave to File Second Amended Complaint and Brief in Support #
One year after the starting the case, the Sokolowskis moved to amend their complaint a second time, expanding the case to expose Digital Gold and the blocksize war as a fraud, including new RICO claims against the Enterprise, and adding Defendants Xclaim, Andrew Glantz, Jefferies, and Vincent Falco.
Plaintiffs' Motion to Stay Proceedings and Brief in Support #
To research litigation financing and obtain the required counsel for PROHASHING, the Sokolowskis moved to stay the proceedings.
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. 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.
Blog: Leveling The Playing Field
Digital Gold Scheme 3: The Jefferies Claim Sale Scheme
Published: January 12, 2026The third scheme in the Digital Gold Enterprise's racketeering involved the creation of a fraudulent bankruptcy claim sale that was intended to deter the Sokolowskis and PROHASHING from discovering the Digital Gold fraud.
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.