- DCG goes to court to dismiss Gemini’s lawsuit. The lawsuit was filed against the platform in July 2023
- The lawsuit alleges that Gemini cannot hold DCG responsible for the misrepresentations of Genesis
Group of digital currencies [DCG] and its head – Barry Silbert – have finally gone to court to get crypto exchange – Gemini’s lawsuit dismissed. The crypto exchange had taken the cases to court in July 2023.
The lawsuit alleged that DCG misrepresented facts and financial statements. The lawsuit followed after DCG failed to respond to Gemini’s “final offer”. The offer sought a payment of $1.465 billion in cash, BTC and ETH.
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Specifically, at the heart of the lawsuit is the Gemini Earn program, which was offered in partnership with Genesis — a now-bankrupt crypto lender. The crypto exchange had to shut down service after Genesis interrupted withdrawals, trapping the platform’s funds in the process.
This, in turn, resulted in a back and forth conflict between Gemini and DCG – the parent company of Genesis.
DCG is labeling Gemini’s lawsuit a smear campaign
In the last in this series, DCG claims the lawsuit was a “public relations campaign”. The comment references the allegations made on social media by Tyler and Cameron Winklevoss – the co-founders of Gemini. The lawsuit is reading,
Gemini and his principals – Cameron and Tyler Winklevoss – then began an attempt to deflect blame by devising a public Twitter-based character assassination campaign against defendants DCG (Genesis’ indirect parent) and Silbert (DCG’s founder) – none of whom both operated or oversaw the Gemini Earn program. These tweets were personal, mean and false…”
The filing also highlights that the exchange’s lawsuit does not win over Genesis, which oversaw the Earn program. It emphasized that DCG, Silbert and other accused were not involved in the program, in its inception, promotion and operational phases.
In addition, the notice of resignation claims that Gemini agreed that Genesis alone would be held responsible for “all claims and liabilities.” And this accountability would not extend to other affiliates or its parents. In addition, the submission further reads,
“The rest of the indictment is a hodgepodge of conclusive allegations against undefendant Genesis, all belied by the fact that Gemini did not make these spectacular claims in the Genesis bankruptcy. […] In either case, these allegations against Genesis have no legal bearing on the claims against the actual defendants in this case.”
In addition, the filing stated that the law does not require the parent company to correct all misrepresentations of its subsidiary. In doing so, DCG claims it has no responsibility to “correct another person’s alleged false inaccuracies” to Gemini. The filing concludes that Gemini’s lawsuit is an attempt to “smudge” DCG and Silbert.