Gemini, the cryptocurrency exchange founded by the Winklevoss brothers, has made the decision to sue Digital Currency Group (DCG) and its CEO Barry Silbert for fraud. Gemini seeks compensation for damages and losses it suffered as a result of DCG’s and Silbert’s misleading statements and omissions regarding Genesis, the DCG subsidiary that participated in the “Gemini Earn” program.
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Gemini sues Digital Currency Group (DCG)
The Winklevoss brothers, who founded the Gemini cryptocurrency exchange, ended up taking legal action against Digital Currency Group (DCG) and its boss Barry Silbertwhom they accuse of fraud.
The lawsuit, filed in the New York Supreme Court, follows Cameron Winklevoss’ recent proposal to find common ground in the case surrounding Gemini and Genesis, a subsidiary of Digital Currency Group. Indeed, a few days ago, the billionaire had published a public letter to the place of Barry Silbert asking him to pay 1.5 billion dollars over a period of 5 years.
This ” latest offer , which arrives in the middle of a dispute that has now been going on for a while, was also intended to warn the CEO of Digital Currency Group. Indeed, the letter warned the latter that if he refused Gemini’s offer, he would then be prosecuted in particular for having evaded his responsibilities vis-à-vis the case. Which will eventually happen.
To add some context, Gemini and Genesis were previously associated through the Gemini Earn program, which allowed hundreds of thousands of users to earn returns on their cryptocurrencies. However, Genesis went bankrupt following the successive collapses of Terra, 3AC, Celsius and finally FTX, and today owes more than $1 billion to Gemini.
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Barry Silbert directly targeted and accused of fraud
Through its lawsuit, Gemini hopes to recover the ” damages and losses “which were caused to him as a result” false, misleading and incomplete statements and omissions of DCG and Silbert towards Gemini “.
According to the document, in October 2022, the CEO of Digital Currency Group would have contacted the Winklevoss brothers in order to convince them that the concerns of Genesis were only temporary, and this when Gemini wanted to withdraw from the Gemini program. Earn following the setbacks encountered by the DCG subsidiary. And yet, it would seem that Barry Silbert was well aware of the insolvency of his company :
“In reality, as Silbert well knew, the problems with Genesis ran much deeper than just a matter of timing. Based on Silbert’s assertions, Gemini elected to delay the termination of the Gemini Earn program – and not to explore the possibility of earlier termination or other remedial measures, as Gemini would have done if Silbert had been telling the truth. »
Furthermore, it appears that Genesis had told its creditors that its parent company, namely Digital Currency Group, had “absorbed” the losses relating to the collapse of Three Arrows Capital (3AC) : ” A carefully crafted lie “, according to Cameron Winklevoss.
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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