Digital Currency Group responded to the lawsuit filed by Gemini alleging that it defrauded its creditors by calling it a “publicity stunt” by Cameron Winklevoss.
Gemini revealed yesterday that it has filed a lawsuit against DCG and its CEO Barry Silbert for directly orchestrating and perpetrating fraud against creditors.
Gemini claimed that the CEO of DCG pushed to continue the Earn program despite being fully aware of Genesis’ insolvency.
Cameron Winklevoss alleged that Barry Silbert and DCG executives lied over and over again to hide the truth from Gemini and other creditors.
DCG’s subsidiary Genesis owes nearly $1 billion to users of the Gemini’s Earn program and other creditors.
DCG Calls Gemini’s Lawsuit Baseless And Defamatory
DCG issued a statement last night saying that the latest lawsuit is another publicity stunt by Cameron Winklevoss to divert blame and responsibility from himself and Gemini.
The Barry Silbert-led conglomerate said any suggestion of wrongdoing by the company or its employees is unfounded, defamatory and completely false.
According to the statement, DCG leaders have been involved in active negotiations with the representatives of the Official Committee of Unsecured Creditors and the Ad Hoc committee to reach an agreement.
Furthermore, he blamed the Gemini leadership for MIA (missing in action) and issuing press releases while DCG leaders have been working around the clock to reach a deal.
The DCG statement claims that neither of the Winklevoss twins were involved in any of the in-person meetings. The statement concluded:
“The mediation process is coming to an end and we hope to wrap up the Genesis Chapter 11 class soon.”
Winklevoss twins accuse DCG and Barry Silbert of fraud
In response to the statement issued by DCG, Tyler Winklevoss tweeted that DCG and Barry Silbert did not address or deny any of the allegations made in the 33-page complaint. “Exactly which parts are ‘unsubstantiated, defamatory and completely false?'” Tyler asked.
The Gemini co-founder claimed that DCG and Barry were directly involved in misleading creditors as to the financial condition of Genesis.
Gemini has claimed in its lawsuit that when Three Arrows Capital (3AC) collapsed in June 2022, it left a $1.2 billion hole in Genesis’s balance sheet.
At the time, Gemini was assured that DCG had stepped in to absorb the losses, which Gemini claimed was an intentional lie.
The Winklevoss twins had repeatedly warned DCG to take legal action against them if they did not move to resolve the issue.
