Digital Currency Group responds to Winklevoss’ Gemini lawsuit

Digital Currency Group (DCG) has responded to the recent lawsuit filed by Winklesvoss’s’ Gemini Exchange, where the plaintiff alleged that DCG CEO Barry Silbert orchestrated and directly perpetrated the DCG and Genesis fraud against creditors.

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Digital Currency Group responds to the Winklevoss lawsuit

For context, Genesis, a subsidiary of Digital Currency Group, owes up to $766 million to Gemini’s Earn program users and a lot more to other creditors. Genesis has been criticized for carelessness and facilitating a “risky arbitrage trading strategy.”

According to the Winklevoss lawsuit, DCG and its CEO were well aware of their state of insolvency but failed to disclose it despite holding funds from the Earn program. Genesis is criticized for carelessness and facilitating a “risky arbitrage trading strategy.”

On July 4, Gemini’s Cameron Winklevoss penned an open letter offering a “final deal” to DCG and its CEO and assuring that non-compliance would lead to a lawsuit.

Gemini followed through with the threat on Friday, as announced by Cameron Winklevoss, in an attempt to recover funds.

Digital Currency Group, a venture capital (VC) firm, has defended itself and its CEO Barry Silbert against the accusations of masterminding fraud against creditors, sharing a snapshot of its response with 144K+ followers on Twitter and anyone following the matter. 

In the post, the VC firm minimizes the lawsuit as another “publicity stunt” by the plaintiffs meant to shift blame and avoid taking responsibility despite having run the Gemini Earn program themselves.

DCG claims that Winklesvoss’s allegations were “baseless, defamatory, and completely false,” citing a sustained commitment to negotiations for all stakeholders in the debt. Specifically, the C-suite of DCG has reportedly been in active talks with personnel from the “Unsecured Creditors Committee and Ad Hoc Committee for an arrangement.”

Reportedly, Gemini’s leadership, comprising Tyler and Cameron Winklevoss, was absent from all these negotiations.

The twins will not have it!

The rebuttal did not escape the eye of the twins. Only this time, Tyler, not Cameron Winklevoss, took to the keyboard to clap back against DCG and Silbert. 

Underscoring that the defendants neither address nor deny the complaints, Tyler reveals that what they want is a “real deal with real value.”

According to Tyler, DCG was buying time as it sought ways to escape scot-free. Community members remain keen to see how the case will unfold as Gemini Earn program customers look to be made whole.

Former SEC official John Reed Stark has endorsed the idea that Gemini should first make its customers whole, then go after DCG and Silbert. In his opinion, whatever assets Gemini has, EARN investors should be the first priority for reimbursement.

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