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News

DCG Fires Back Against Gemini’s Lawsuit Allegations

August 10, 2023 - Around 2 mins mins to read

Key Points:

  • DCG challenges fraud claims by Gemini in the ongoing legal clash.
  • Barry Silbert filed to dismiss Gemini’s allegations, citing a lack of evidence and counter-accusing a smear campaign.
  • The dispute underscores industry accountability as Gemini seeks $1.1 billion in compensation.
According to Bloomberg, Digital Currency Group (DCG) has taken a decisive step in the ongoing legal battle with Gemini by filing a motion to dismiss a lawsuit against DCG and its leader, Barry Silbert.
DCG Fires Back Against Gemini's Lawsuit Allegations
Barry Silbert

The suit was originally filed by Gemini, the crypto exchange established by Cameron and Tyler Winklevoss, alleging that DCG and Silbert misrepresented the accounting handling of liabilities from its lending unit, Genesis Global, following the collapse of Three Arrows Capital.

In response, Silbert countered with a motion to dismiss the case, claiming that Gemini’s allegations of fraud lack substantial evidence. He further accuses Gemini and its founders of launching a “character assassination campaign” against him.

The legal dispute stems from the freezing of withdrawals by DCG’s crypto lending unit, Genesis Global Holdco, which left significant amounts of Gemini customer assets inaccessible.

Gemini had introduced the Gemini Earn program, which allowed clients to earn interest on their crypto deposits through Genesis Global. After Genesis filed for bankruptcy, Gemini sought resolution through negotiations but ultimately resorted to legal action.

DCG contends that neither it nor its CEO had direct oversight of the Gemini Earn program, and hence, the allegations of fraud lack merit.

Gemini’s lawsuit alleged that Genesis, with support from Silbert, misrepresented risk-management practices and vetting processes.

The exchange seeks compensation for losses resulting from alleged misrepresentations, amounting to over $1.1 billion, arising from DCG’s and Silbert’s actions.

DCG’s motion to dismiss asserts that the Master Loan Agreements tied to the Gemini Earn program pertain to its subsidiary Genesis, not the company.

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.

Barry Silbert

DCG

Gemini

Genesis

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

DCG Fires Back Against Gemini’s Lawsuit Allegations

Key Points:

  • DCG challenges fraud claims by Gemini in the ongoing legal clash.
  • Barry Silbert filed to dismiss Gemini’s allegations, citing a lack of evidence and counter-accusing a smear campaign.
  • The dispute underscores industry accountability as Gemini seeks $1.1 billion in compensation.
According to Bloomberg, Digital Currency Group (DCG) has taken a decisive step in the ongoing legal battle with Gemini by filing a motion to dismiss a lawsuit against DCG and its leader, Barry Silbert.
DCG Fires Back Against Gemini's Lawsuit Allegations
Barry Silbert

The suit was originally filed by Gemini, the crypto exchange established by Cameron and Tyler Winklevoss, alleging that DCG and Silbert misrepresented the accounting handling of liabilities from its lending unit, Genesis Global, following the collapse of Three Arrows Capital.

In response, Silbert countered with a motion to dismiss the case, claiming that Gemini’s allegations of fraud lack substantial evidence. He further accuses Gemini and its founders of launching a “character assassination campaign” against him.

The legal dispute stems from the freezing of withdrawals by DCG’s crypto lending unit, Genesis Global Holdco, which left significant amounts of Gemini customer assets inaccessible.

Gemini had introduced the Gemini Earn program, which allowed clients to earn interest on their crypto deposits through Genesis Global. After Genesis filed for bankruptcy, Gemini sought resolution through negotiations but ultimately resorted to legal action.

DCG contends that neither it nor its CEO had direct oversight of the Gemini Earn program, and hence, the allegations of fraud lack merit.

Gemini’s lawsuit alleged that Genesis, with support from Silbert, misrepresented risk-management practices and vetting processes.

The exchange seeks compensation for losses resulting from alleged misrepresentations, amounting to over $1.1 billion, arising from DCG’s and Silbert’s actions.

DCG’s motion to dismiss asserts that the Master Loan Agreements tied to the Gemini Earn program pertain to its subsidiary Genesis, not the company.

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.