March 27, 2024
Latest Cryptocurrency News

DCG Files Motion to Dismiss Gemini Lawsuit Citing Unsubstantiated Claims

Crypto VC firm Digital Currency Group (DCG) has submitted a legal motion to have a lawsuit filed against it by the crypto exchange Gemini dismissed. Gemini had alleged fraudulent activities in connection to DCG’s Earn program.

In a filing made on August 10 to the United States District Court for the Southern District of New York, DCG’s legal representatives, along with its CEO Barry Silbert, contended that Gemini’s lawsuit, initiated in July, amounted to a “continuation of [a] public relations campaign.” They claimed that Gemini had targeted DCG through social media with unfounded and malicious accusations. The legal document mirrored the essence of Gemini’s own complaint, wherein the crypto exchange aimed to recover financial losses incurred due to alleged deceptive statements and omissions by DCG and Silbert. Gemini also asserted that they played a role in fostering fraudulent actions against the exchange in connection to “Genesis’s fraud against Gemini.”

Genesis, a subsidiary of DCG, had overseen the crypto lending aspect of the Earn program, which was introduced in collaboration with Gemini in 2021. This program asserted that users of Gemini could lend their cryptocurrencies to Genesis with the assurance that the company would later repay the principal with interest. However, in November 2022, citing extraordinary market upheaval, Genesis suspended withdrawals and subsequently filed for Chapter 11 bankruptcy in January 2023.

In DCG’s filing, it was argued that Silbert and DCG had very limited involvement with the Gemini Earn program. Additionally, DCG challenged the substantiality of Gemini’s claims of wrongdoing, highlighting that Gemini had not presented these assertions during the Genesis bankruptcy proceedings, which undermined the validity of their allegations against DCG and Silbert.

The downfall of Three Arrows Capital in 2022 reportedly resulted in Genesis being entangled in bankruptcy proceedings with $1.2 billion in unresolved funds. Gemini’s founders, Cameron and Tyler Winklevoss, stated that both Genesis and DCG owed the exchange’s customers $900 million.

Both Gemini and Genesis are presently facing legal action from the U.S. Securities and Exchange Commission (SEC), which was initiated in January. The SEC’s case alleges that the Earn program offered the sale of unregistered securities. Furthermore, New York State’s Department of Financial Services is reportedly conducting an investigation into Gemini regarding similar allegations.

Image By vecstock

Related posts

Hong Kong Probes Worldcoin’s Privacy Issues

Harper Hall

Project Mariana Explores Cross-Border CBDC Trading: Insights from BIS and Central Banks

Henry Clarke

Gary Gensler’s Congressional Testimony: 5 Key Moments

Henry Clarke

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More