BREAKING: Digital Currency Group Responds To Gemini Lawsuit, Files Motion

By Vince • August 10, 2023 1:19 pm • Comments

In July, ProCoin News reported that Cameron Winklevoss of the Gemini exchange filed a lawsuit against the Digital Currency Group and CEO Barry Silbert.

Following the collapse of Thee Arrows Capital and the ensuing fallout, Winklevoss claimed that DCG defrauded Gemini customers by misrepresenting its balance sheet and the financial health of DCG and its various entities.

Digital Currency Group has denied any, and all, such allegations made by Winklevoss in his lawsuit. …

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On Thursday, DCG continued its opposition and legal defense against the lawsuit filed by Gemini and Winklevoss through a legal motion to dismiss the lawsuit.

The motion and the corresponding statement from DCG have characterized the Gemini lawsuit as ridiculous and unnecessary:

Axios explained the reasoning behind the motion for a dismissal:

Each MLA signed by Gemini Earn customers outlined that liabilities that arise from said agreements are the sole obligation of Genesis, not DCG nor any of its affiliate businesses, according to the filing.

Digital Currency Group also released this official statement:

“This is yet another publicity stunt from Cameron Winklevoss to deflect blame and responsibility from himself and Gemini, which operated the Gemini Earn program.

Any suggestion of wrongdoing by DCG or any of its employees is baseless, defamatory, and completely false.

From day one, DCG has remained committed to reaching an amicable solution for all parties to the Genesis bankruptcy.

Senior DCG leadership has been working around the clock over the course of multiple months in active negotiation with representatives of the Official Unsecured Creditors Committee and Ad Ho Committee to reach a deal while Gemini’s leadership was MIA or only issuing press statements.

To be clear, neither Cameron nor Tyler Winklevoss have been involved in any of the recent in-person meetings. The mediation process is nearing a close and we expect to bring the Genesis Chapter 11 case to a conclusion soon.”

 

Cameron Winklevoss of Gemini originally claimed in July of 2023:

“Today, Gemini filed a lawsuit against DCG and Barry Silbert personally in New York court. Barry was not only the architect and mastermind of the DCG and Genesis fraud against creditors, he was directly and personally involved in perpetrating it.

The complaint tells the whole story, but let’s start here: when Gemini notified Genesis it would be terminating the Earn program in October 2022, Barry reached out to set up a meeting to induce Gemini to continue Earn.

He did this knowing Genesis was massively insolvent.”

 

The Block provided background context:

Gemini, which was founded by twin brothers Cameron and Tyler Winklevoss, sued Silbert and DCG over the money DCG-subsidiary Genesis owes the crypto exchange’s clients.

Prior to the credit crisis that swept crypto in 2022, Genesis and Gemini entered into a business relationship in which the latter firm provided its Earn clients’ funds to the former firm to generate a yield.

That provided Gemini clients with a juicy yield until Genesis paused withdrawals and stopped processing redemption requests in the wake of FTX’s bankruptcy.

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