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.
