In July, Gemini filed a complaint claiming Barry Silbert and Digital Currency Group (DCG) had made untrue, incomplete, and deceptive omissions and representations associated with Genesis and the Earn program.
DCG, a venture capital company, has filed a dismissal motion for a lawsuit by Gemini, a cryptocurrency exchange, concerning fraud associated with its Earn program.
The filing on August 10 with the U.S District Court for the Southern District of New York, attorneys for DCG and Barry Silbert, its chief executive officer, asserted that July’s lawsuit by Gemini was a continuation of a PR campaign that targeted the organization on social media using malicious, personal, and untrue claims.
Gemini Accused of Incomplete Omissions and Misleading Statements
This filing reflected the complaint by Gemini, where the crypto exchange claimed it was seeking to retrieve funds incurred following misleading, untrue, and incomplete omissions and representations to Gemini by Silbert and DCG. Besides, it also indicated their role in facilitating fraud activities by Genesis against Gemini.
Genesis, a subsidiary of DCG, is a crypto lender tasked with running an Earn program introduced in 2021 in collaboration with Gemini. According to the program, users of Gemini could loan crypto to Genesis with the promise of interest during repayment. Nevertheless, in November, the organization stopped withdrawals, claiming ‘unexpected turmoil in the market’ and, in January 2023, it filed for Chapter 11 bankruptcy.
The DCG filing claimed Silbert and the organization had practically no links with the Earn Program, and Gemini could not support its allegations of deceitful activity.
Assortment of Accusations Against Non-defendant Genesis
This complaint is an assortment of final accusations against non-defendant Genesis, all opposed by Genesis’s failure to file the enormous allegations in the Genesis bankruptcy.
The sudden collapse of Three Arrows Capital allegedly resulted in Genesis having $1.2 billion of funds in limbo amidst bankruptcy proceedings. Gemini’s cofounders, Cameron and Tyler Winklevoss, have indicated that DCG and Genesis’s debt to the exchange’s client was $900 million.
Genesis and Gemini are encountering a civil suit concerning its Earn program. The United States Securities and Exchange Commission (SEC) filed this suit in January. According to the agency, the program provided unregistered securities for sale. The State Department of Financial Services in New York is also probing the exchange owing to the same claims.
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