DCG and Barry Silbert Seek Dismissal of Lawsuit by Gemini Trust Company Over Alleged Misrepresentations
Digital Currency Group (DCG) has filed a motion to dismiss Gemini's lawsuit, claiming fraud by the company and its founder, Barry Silbert, through DCG's subsidiary, Genesis, which held funds for Gemini's Earn program.
On July 7, Gemini and its founders, Cameron, and Tyler Winklevoss, filed a lawsuit alleging that DCG and Barry Silbert provided false information about the financial status of their lending subsidiary, Genesis.
Gemini claimed that the misinformation mistakenly led customers of Gemini Earn to remain enrolled in the lending program.
Despite being aware of the issue, DCG and Silbert did not disclose that Genesis had a significant financial gap of one billion dollars due to the collapse of Three Arrows Capital (also known as 3AC), a crypto hedge fund, in the previous year.
In response to the allegations raised by Gemini in the ongoing lawsuit, DCG submitted a statement on August 10 asserting that Gemini's fraud claims lack sufficient support.
DCG and Barry Silbert outlined four key "statements of facts" in their response to argue for the dismissal of Gemini's lawsuit.
DCG and Silbert argued that Gemini's allegations of fraud are misrepresented, and thus, the lawsuit should be dismissed due to its lack of essential claims.
Gemini's response clarified that the fraud allegations pertain specifically to the Gemini Earn program, previously operated by Gemini alongside Genesis Global Capital, LLC.
The legal dispute revolves around a digital-asset lending arrangement between Gemini and Genesis, unrelated to DCG.
Attorneys for Digital Currency Group and CEO Barry Silbert asserted that the Winklevoss twins initiated a campaign on Twitter to shift blame, stating, "DCG (parent company of Genesis) and Silbert (founder of DCG) were
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