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Gemini: Barry Silbert’s DCG continues to ‘gaslight creditors’

Press Releases Crypto News Crypto-News Gemini: Barry Silbert’s DCG continues to ‘gaslight creditors’

Gemini, the crypto exchange founded by brothers Tyler and Cameron Winklevoss, continues to accuse Barry Silbert’s Digital Currency Group (DCG) of fraud.

According to the court filing, filed on Sept. 15, Gemini claims that DCG is trying to avoid accountability for the damage inflicted on the victims of its Earn product.

“DCG continues its campaign of contrived, misleading, and inaccurate assertions in an attempt to gaslight creditors of the Genesis estate generally, and the Gemini Lenders specifically, and escape responsibility for the harm it has caused them,” Gemini’s legal advisors, New York-based Hughes Hubbard & Reed LLP, stated.

This legal action by Gemini is a direct response to a recent statement issued by DCG concerning a proposed agreement involving the latter, the debtors, and the Official Committee of Unsecured Creditors.

Gemini’s allegations center on DCG’s creation of a $1.1 billion promissory note, which Gemini claims was an attempt to obscure substantial financial losses stemming from the collapse of Three Arrows Capital (3AC). The allegations raise concerns about transparency and financial integrity in the cryptocurrency space, especially as regulatory scrutiny in the industry continues to intensify.

Gemini contends that DCG intentionally kept the true terms of the promissory note hidden, resulting in misleading information being conveyed to Gemini’s creditors.

Additionally, Gemini asserts that DCG borrowed a significant quantity of Bitcoin (BTC) from Gemini instead of delivering the expected capital. These allegations deepen the legal dispute and cast a shadow over the actions of a major player in the cryptocurrency arena.

Adding to the legal confrontation, Gemini emphasizes that DCG has yet to fulfill its obligation to repay over $630 million borrowed from its company, with the repayment deadline already due months ago.

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Author: Ogwu Osaemezu Emmanuel

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