Digital Currency Group (DCG) has dismissed the lawsuit filed by Gemini as a “publicity stunt” orchestrated by Cameron Winklevoss.
Gemini recently announced that it has taken legal action against DCG and its CEO, Barry Silbert, accusing them of defrauding creditors.
According to Gemini, Silbert pressured the continuation of the Earn program despite knowing about Genesis’ insolvency.
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Cameron Winklevoss alleges that Silbert and DCG executives repeatedly lied to conceal the truth from Gemini and other creditors.
Genesis, a subsidiary of DCG, reportedly owes nearly $1 billion to Gemini’s Earn program users and other creditors.
DCG responded to the lawsuit by issuing a statement last night, dismissing it as baseless and defamatory.
The company labeled the legal action as another attempt by Cameron Winklevoss to deflect blame from himself and Gemini.
DCG emphasized that any suggestions of wrongdoing by the company or its employees are completely false.
The statement revealed that DCG has been actively engaged in negotiations with the representatives of the Official Unsecured Creditors Committee and Ad Hoc committee to reach a resolution.
DCG criticized Gemini’s leadership, accusing them of being “missing in action” and making press statements while DCG has been working tirelessly to find a solution.
DCG’s statement clarified that neither of the Winklevoss twins was involved in any of the in-person meetings related to the mediation process.
The statement concluded optimistically, expressing an expectation to bring the Genesis Chapter 11 case to a close soon.
In response to DCG’s statement, Tyler Winklevoss, co-founder of Gemini, tweeted that DCG and Barry Silbert failed to address or deny any of the allegations made in the 33-page complaint.
Tyler questioned which parts of the complaint DCG considers “baseless, defamatory, and completely false.”
Gemini asserts that DCG and Silbert were directly involved in misleading creditors about Genesis’ financial condition.
The lawsuit claims that when Three Arrows Capital (3AC) collapsed in June 2022, it created a $1.2 billion deficit in Genesis’ balance sheet.
Gemini alleges that DCG intentionally lied to reassure them that they would absorb the losses.
The Winklevoss twins have repeatedly warned DCG of potential legal action if the issue remained unresolved.
The lawsuit between Gemini and DCG continues to unfold as both parties present their arguments and evidence in court.
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