Gemini Files Lawsuit Against DCG For Fraud Conspiracy, DCG Calls It A “Publicity Stunt”
Key Points:
- Gemini has filed a lawsuit against Digital Currency Group (DCG) and its founder Barry Silbert for their alleged involvement in a fraud conspiracy against creditors of Genesis, a cryptocurrency lending platform.
- DCG denies the claims and calls it a “publicity stunt” by Cameron Winklevoss to deflect blame from himself and Gemini. The case is expected to be handled under Chapter 11 bankruptcy law.
Gemini has sued DCG and Barry Silbert for a fraud conspiracy against Genesis creditors. DCG calls it a “publicity stunt”. Mediation process is ending.
Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has sued Digital Currency Group (DCG) and its founder Barry Silbert. Gemini alleges that Silbert and DCG were involved in fraud against creditors of Genesis, a cryptocurrency lending platform that filed for bankruptcy last year.
According to the complaint, Silbert and DCG conspired with Genesis to create false financial reports to hide the fact that Genesis was insolvent. DCG responded to the lawsuit by calling it a “publicity stunt” by Cameron Winklevoss to deflect blame from himself and Gemini. The mediation process is coming to an end, and the case is expected to be handled under Chapter 11 bankruptcy law.
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.
DCG responded
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 Hoc 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.
Gemini claims that Silbert and DCG were involved in a carefully crafted fraud against creditors of Genesis. When Genesis notified Gemini that it would terminate the Earn program in October 2022, Silbert reached out to set up a meeting to induce Gemini to continue to Earn. He did this knowing that Genesis was massively insolvent. Silbert claimed that Genesis faced only a timing issue, but this was a lie that hid the gaping hole in Genesis’s balance sheet.
When Three Arrows Capital (3AC) collapsed in June 2022, it blew a $1.2 billion hole in Genesis’s balance sheet. Instead of coming clean, Genesis claimed that everything was business as usual because DCG had stepped in to absorb the losses. However, DCG did not absorb any losses or provide real capital. Behind the scenes, DCG wrote Genesis a sham 10-year promissory note with a measly 1% interest rate – worth just a fraction of its $1.1 billion face amount. Genesis was wildly insolvent.
The fraud extends to the very top, with Silbert and other DCG executives directly involved in these lies and concealing the truth from Gemini and other creditors. According to Cameron Winklevoss, Mark Murphy, then-COO of DCG (and current President), was copied when Genesis disseminated its fake financial reports. He knew that the reports lied about DCG’s financial support for Genesis but did not correct them.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Gemini Files Lawsuit Against DCG For Fraud Conspiracy, DCG Calls It A “Publicity Stunt”
Key Points:
- Gemini has filed a lawsuit against Digital Currency Group (DCG) and its founder Barry Silbert for their alleged involvement in a fraud conspiracy against creditors of Genesis, a cryptocurrency lending platform.
- DCG denies the claims and calls it a “publicity stunt” by Cameron Winklevoss to deflect blame from himself and Gemini. The case is expected to be handled under Chapter 11 bankruptcy law.
Gemini has sued DCG and Barry Silbert for a fraud conspiracy against Genesis creditors. DCG calls it a “publicity stunt”. Mediation process is ending.
Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has sued Digital Currency Group (DCG) and its founder Barry Silbert. Gemini alleges that Silbert and DCG were involved in fraud against creditors of Genesis, a cryptocurrency lending platform that filed for bankruptcy last year.
According to the complaint, Silbert and DCG conspired with Genesis to create false financial reports to hide the fact that Genesis was insolvent. DCG responded to the lawsuit by calling it a “publicity stunt” by Cameron Winklevoss to deflect blame from himself and Gemini. The mediation process is coming to an end, and the case is expected to be handled under Chapter 11 bankruptcy law.
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.
DCG responded
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 Hoc 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.
Gemini claims that Silbert and DCG were involved in a carefully crafted fraud against creditors of Genesis. When Genesis notified Gemini that it would terminate the Earn program in October 2022, Silbert reached out to set up a meeting to induce Gemini to continue to Earn. He did this knowing that Genesis was massively insolvent. Silbert claimed that Genesis faced only a timing issue, but this was a lie that hid the gaping hole in Genesis’s balance sheet.
When Three Arrows Capital (3AC) collapsed in June 2022, it blew a $1.2 billion hole in Genesis’s balance sheet. Instead of coming clean, Genesis claimed that everything was business as usual because DCG had stepped in to absorb the losses. However, DCG did not absorb any losses or provide real capital. Behind the scenes, DCG wrote Genesis a sham 10-year promissory note with a measly 1% interest rate – worth just a fraction of its $1.1 billion face amount. Genesis was wildly insolvent.
The fraud extends to the very top, with Silbert and other DCG executives directly involved in these lies and concealing the truth from Gemini and other creditors. According to Cameron Winklevoss, Mark Murphy, then-COO of DCG (and current President), was copied when Genesis disseminated its fake financial reports. He knew that the reports lied about DCG’s financial support for Genesis but did not correct them.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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