Barry Silbert and his company, Digital Currency Group (DCG), have requested a US court to dismiss a lawsuit from the Gemini Trust Inc. crypto exchange, which alleges fraud against both DCG and Silbert, Bloomberg reports.
The conflict arises from DCG’s lending unit, Genesis Global, freezing withdrawals and trapping significant amounts of Gemini customer assets.
The recent motion argues that the defendants are not liable for the alleged misrepresentations by Genesis. DCG also argues that Gemini hasn’t sufficiently demonstrated they knew of any wrongdoing, that they relied on DCG’s statements or actions in a reasonable manner, or that they suffered specific damages due to DCG’s actions. Essentially, DCG believes Gemini’s lawsuit lacks the foundational arguments needed to proceed.
Gemini took the Digital Currency Group (DCG) and its CEO to court in early July after DCG missed Gemini’s deadline for a restructuring agreement related to the bankruptcy of the crypto lending firm Genesis.
The lawsuit claims DCG and its CEO, Barry Silbert, misrepresented certain financial details linked to losses Genesis incurred from the collapse of a crypto hedge fund.
As Genesis’s largest creditor, Gemini aims to recover over $1.1 billion.
Genesis was the primary partner of the troubled Gemini Earn service.
As reported by U.Today, Cameron Winklevoss publicly urged Silbert to resolve the issue before taking the matter to court.
Godfrey Benjamin
Gamza Khanzadaev
Vladislav Sopov