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Gemini sues Digital Currency Group and Barry Silbert over Genesis and Kazan program

GeminiUS-based crypto exchange, The conglomerate announces that it has filed a lawsuit against Digital Currency Group (DCG) and its CEO, Barry Silbertcondemning “defraud creditors”.

In a document filed in a New York court on July 7, Gemini Announced DCG and Silbert are involved in a plan that includes the loan “a large amount of cryptocurrencies and US dollars” in Genesis. According to the document, Gemini wants to reclaim the funds generated due to this event. “False, misleading and incomplete statements and omissions regarding Gemini by DCG and Silbert” and roles “by encouraging and facilitating Genesis to defraud the Gemini”, add it The company allegedly took legal action in the event that Genesis went bankrupt.

creationAs a subsidiary of DCG, He was the crypto lender responsible for managing a Win program in partnership with Gemini.was launched in 2021. The program allowed Gemini users to lend their cryptocurrencies to Genesis with the promise that the company would repay them with interest. But, The company stopped withdrawals in November 2022quoting “Unprecedented market turmoil” and then Filed for Chapter 11 bankruptcy.

7 July Cameron WinklevossGemini co-founder tweeted by Silbert He knew of Genesis “largely bankrupt” While trying to continue the earning program. The complaint allegedly includes false financial reports made by DCG and Silbert since the company collapsed. Three Arrow Capital which in June 2022 “A $1.2 billion hole appeared in Genesis’ balance sheet”. Winklevoss said Genesis and DCG owe Gemini customers $900 million.

“Barry, DCG and Genesis conspired to create fake balance sheets to hide the truth from Gemini and creditors”said Winklevoss. “This scam goes all the way to the top. Barry Silbert and other DCG executives were directly involved in these lies and repeatedly lied to hide the truth from Gemini and other creditors.”

1/ Today @Gemini filed a lawsuit against @DCGco And @BarrySilbert himself in New York court. Barry was not only the architect and mastermind of DCG and Genesis’s scams against creditors, but he was directly and personally involved in its making.

—Cameron Winklevoss (@cameron) July 7, 2023

winklevoss threatened to sue DCG several times and Silbert, due to delays in resolving the Gemini and Genesis issues, and recently sent an open letter to the CEO recommending a proposal. “best and last” from $1.47 billion by 2028. In a Twitter reply on July 7, DCG Announced the reason is one “advertising campaign” Winklevoss and this allegations of irregularity “unfounded, defamatory and completely false”.

The results of the win program have made Genesis and Gemini the target of federal and state regulators.. United States Securities and Exchange Commission in January Sued two companies The New York Department of Financial Services, on the other hand, for the alleged offering of unregistered securities. He would search for Gemini For statements about the winning program.

Update (July 7, 16:44 UTC): This article has been updated to include a comment from DCG.

Translation of Matteo Carrone

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