After threats, crypto exchange Gemini takes DCG to court

Gemini finally sued the crypto conglomerate Digital Currency Group after an unsuccessful attempt to recover visit fonds owed by Genesis as part of its Earn.

In conflict with DCG for several months, Gemini is now in trial against the cryptocurrency group headed by Barry Silbert, reported. Bloomberg Friday.

The Winklevoss brothers’ exchange had made a “ final offer “to Digital Currency Group earlier this month, demanding a payment of 1.46 billion dollars.

The two firms have been at loggerheads since the surprise bankruptcy of FTX, which subsequently led to the collapse of DCG’s Genesis subsidiary. The latter was a partner in Gemini’s Earn program and now owes hundreds of millions of dollars to the Winklevoss platform, its biggest creditor.

Gemini has sued DCG in New York Supreme Court, accusing the group and Barry Silbert of ” fraud and deceit “. The platform had called for the resignation of its CEO earlier this year.

With EarnGemini offered returns to its customers, who are no longer able to withdraw their funds since the freeze on redemptions at Genesis.

From the outset, Genesis enticed Gemini Earn lenders to lend by touting Genesis’ allegedly robust risk management practices and a supposedly thorough verification process […] It was all lies,” Gemini argues in its complaint.

According to the crypto exchange, the damages and losses are a direct consequence of ” false, misleading and incomplete statements from DCG and Silbert to Gemini”.

Digital Currency Group, for its part, quickly published a response on Twitter:

This is yet another publicity stunt by Cameron Winklevoss to deflect blame and responsibility from himself and Gemini, who managed the Earn program. Any suggestion of wrongdoing by DCG or any of its employees is baseless, defamatory and completely false.” tweeted DCG.

The group, which posted a loss of more than $1 billion last year, claims to have tried to find a solution to the problem. amicable solution. “To be clear, neither Cameron nor Tyler were involved in person in the recent meetings. The mediation process is coming to an end, and we expect to conclude the Genesis Chapter 11 case soon,” he added.

Note that the SEC also sued the two crypto giants in January for illegally raising funds through Earn.

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