Digital Currency Group Wants ‘Hodgepodge’ Gemini Lawsuit Tossed Out

Digital Forex Group (DCG) and CEO Barry Silbert filed a movement on Thursday to dismiss a lawsuit introduced by Gemini Belief Firm final month.

Gemini accused DCG and Silbert of constructing “false, deceptive, and incomplete representations” to Gemini after Genesis—which is owned by DCG—filed for Chapter 11 chapter in January.

Gemini’s criticism included an allegation that Silbert knew Genesis was “massively bancrupt” after it sustained hefty losses from the collapse of crypto hedge fund Three Arrows Capital final 12 months. 

However Silbert hid that info from considered one of Gemini’s co-founders throughout a lunch assembly and urged Gemini to proceed with the Gemini Earn program as an alternative, the criticism alleged.

On Thursday, DCG and Silbert’s counsel mentioned Gemini failed to clarify why the presentation made by Silbert was supposedly fraudulent. As for different allegations, the defendants’ counsel claimed it involved Genesis and never DCG or Silbert.

“The remainder of the criticism is a hodgepodge of conclusory allegations towards non-defendant Genesis,” a letter supporting the movement mentioned, including the claims ought to’ve been filed in Genesis’ chapter case. “These allegations towards Genesis haven’t any authorized bearing on the claims towards the precise Defendants on this case.” 

Genesis was the first companion of Gemini Earn, a service supplied by Gemini that permit clients earn curiosity on crypto loaned out to the agency. Genesis suspended buyer withdrawals amid the collapse of FTX final November.

Gemini was co-founded by Tyler and Cameron Winklevoss, who’ve shared frustrations with Silbert publicly on Twitter. In July, earlier than the lawsuit was filed, Cameron Winklevoss issued a “remaining supply” over Genesis’ debt-restructuring negotiations.

Within the letter supporting the defendants’ movement to dismiss, DCG and Silbert’s counsel mentioned the Winklevoss twins have engaged in a “Twitter-based character assassination marketing campaign” to deflect the blame of “irate [Gemini Earn] clients.”

The letter claimed that DCG and Silbert had “nearly nothing to do with the Gemini Earn program” and usually are not liable beneath an settlement every Gemini Earn buyer entered into with Gemini and Genesis.