Digital Currency Group (DCG) has responded to the lawsuit filed by Gemini, dismissing it as nothing more than a “publicity stunt” orchestrated by Cameron Winklevoss. Gemini’s lawsuit claims that DCG and its CEO, Barry Silbert, defrauded creditors by perpetrating fraudulent activities.
Gemini Alleges DCG’s Involvement in Fraudulent Activities
Yesterday, Gemini made headlines by filing a lawsuit against DCG and its CEO, Barry Silbert. The lawsuit alleges that DCG knowingly continued the Earn program despite being fully aware of Genesis’ insolvency, thereby defrauding creditors.
According to Cameron Winklevoss, Barry Silbert and DCG executives repeatedly lied to hide the truth from Gemini and other creditors. Gemini’s Earn program users and other creditors are collectively owed nearly $1 billion by DCG’s subsidiary, Genesis.
DCG Counters Lawsuit, Calls it Baseless and Defamatory
DCG swiftly responded to the lawsuit by issuing a statement last night, denouncing the claims made by Gemini. The company regarded the lawsuit as yet another attempt by Cameron Winklevoss to shift blame away from himself and Gemini.
The conglomerate, led by Barry Silbert, strongly refuted any suggestion of wrongdoing by the company or its employees, categorizing the allegations as baseless, defamatory, and entirely false. DCG emphasized that its leaders have been actively negotiating with representatives of the Official Unsecured Creditors Committee and Ad Hoc committee in an effort to reach a resolution.
Furthermore, DCG criticized Gemini’s leadership, accusing them of being missing in action while DCG leaders tirelessly work towards a solution. The statement clarified that neither of the Winklevoss twins was present during any of the in-person meetings related to the ongoing negotiations. DCG concluded the statement by expressing optimism about the approaching conclusion of the Genesis Chapter 11 case through the mediation process.
Tyler Winklevoss Challenges DCG’s Response on Twitter
In response to DCG’s statement, Tyler Winklevoss took to Twitter to express his dissatisfaction. Tyler pointed out that DCG and Barry Silbert failed to address or deny any of the allegations presented in the 33-page complaint. He questioned which specific parts of the lawsuit DCG deemed “baseless, defamatory, and completely false.”
The co-founder of Gemini emphasized that DCG and Barry Silbert were directly involved in misleading creditors regarding Genesis’ financial condition. Gemini’s lawsuit alleges that when Three Arrows Capital (3AC) collapsed in June 2022, it created a significant deficit of $1.2 billion on Genesis’ balance sheet.
Gemini claims that DCG falsely assured them that they would absorb the losses, which turned out to be an intentional lie.
It’s worth noting that the Winklevoss twins had previously warned DCG about the possibility of legal action if the issue remained unresolved.