Gemini Sues DCG, Barry Silbert Over Alleged Fraudulent Activities

Summary

• Gemini has filed a lawsuit against Digital Currency Group (DCG) and Barry Silbert, alleging fraudulent activities.
• Cameron Winklevoss claims that Silbert played a central role in orchestrating the fraudulent schemes perpetrated by DCG.
• Winklevoss also believes that Silbert attempted to induce the exchange to continue Earn despite being aware of insolvency issues.

Background

Cryptocurrency exchange Gemini has filed a lawsuit in a New York court against DCG (Digital Currency Group) and Barry Silbert. Cameron Winklevoss, the co-founder of Gemini , alleged in a tweet published today, June 7, that Silbert played a central role in orchestrating fraudulent activities and actively took part in the fraudulent schemes perpetrated by DCG and Genesis against creditors.

Silbert Accused of Fraudulent Activity

Post termination Winklevoss also believes that Barry Silbert, reaching out to the exchange after being notified of the program’s termination in October 2022, reportedly attempted to induce the exchange to continue Earn, despite being aware of Genesis’ substantial insolvency issues. Barry Silbert, along with DCG and Genesis, allegedly conspired to deceive Gemini and creditors by fabricating financial reports. These reports included false claims about a phony 10-year promissory note being labeled as a “Current Asset”; falsified balance sheets misrepresenting the note as a $1.1 billion “receivable”; intentional exclusion of the note from loan-duration calculations to conceal its existence; and other actions taken to deceive Gemini and creditors. The lawsuit suggests that top-level executives were directly involved in perpetuating these lies.

Reckless & Fraudulent Conduct Alleged

The lawsuit comes after Cameron Winklevoss penned a strongly-worded letter aimed at Digital Currency Group (DCG) founder Barry Silbert on July 3. It seeks to compel him to settle with his creditors and accuses him of evading responsibility for alleged financial turmoil resulting from what Winklevoss calls reckless and fraudulent conduct.

Looking Forward To Court Appearance

The Gemini co-founder ends his thread by linking full complaint document stating he is looking forward appearing in court .