Gemini Co-Founder Files Lawsuit Against DCG and CEO Barry Silbert
Summary: Cameron Winklevoss, co-founder of Gemini, has filed a personal lawsuit against Digital Currency Group (DCG) and CEO Barry Silbert, alleging that DCG and Silbert stole from their debtors and kept the money for themselves. Winklevoss claims that DCG and Silbert lied about Genesis' financial health.
It has been announced that Gemini’s co-founder, Cameron Winklevoss, has filed a personal lawsuit against the Digital Currency Group (DCG) and its CEO, Barry Silbert.
Lied About Financial Health
According to the lawsuit, DCG and Silbert stole from their debtors and kept the money for themselves. This follows Winklevoss’s last offer to DCG earlier this week to return its customers’ funds, totaling roughly $1 billion.
According to the document, Gemini planned to stop selling the Earn product as of October 2022, as stated by Cameron Winklevoss. Silbert convinced Genesis, who he knew to be “massively insolvent,” to go through with the project anyhow.
According to one of the Winklevoss twins, Barry Silbert lied about Genesis’ financial health. Genesis’ difficulties started in earnest in June 2022, with the failure of Three Arrows Capital (3AC).
According to Cameron:
“When Three Arrows Capital (3AC) collapsed in June 2022, it blew a $1.2 billion hole in Genesis’s balance sheet. Instead of coming clean, Genesis claimed that everything was business as usual because DCG had stepped in to absorb the losses.”
Fictitious Financial Reports
Cameron claims that Barry Silbert has carefully fabricated a lie. He goes on to clarify that DCG took no losses and made no actual financial contributions. DCG fraudulently issued a $1.1 billion 10-year promissory note to Genesis, although the note was not worth anywhere near that much since the interest rate was under 1%. The financial situation at Genesis was critical.
Handpicked News: Polygon Labs Promote Chief Legal Officer Marc Boiron as CEO
To defraud Gemini and its creditors, Barry, DCG, and Genesis worked together to produce fictitious financial reports. In one of these documents, the 10-year promissory note was incorrectly labelled as a “Current Asset,” which, according to Cameron, is a deliberate misrepresentation of the facts.