Gemini Sues DCG, Barry Silbert Over Failed Crypto Recovery

Von | 8. Juli 2023

• Gemini, a Winklevoss-owned crypto exchange, has filed a lawsuit against Digital Currency Group (DCG) and its CEO Barry Silbert for committing “fraud” against the exchange’s customers.
• The lawsuit asserts that DCG and Silbert induced depositors to lend “huge amounts of cryptocurrency and U.S. Dollars” to Genesis through false representations regarding the company’s financial position.
• Gemini is seeking relief including actual, punitive damages and attorney’s fees.

Gemini Sues Genesis Owner

Winklevoss-owned crypto exchange Gemini has filed a lawsuit against Digital Currency Group (DCG) – the owner of the institutional crypto lending company Genesis – for committing “fraud” against the exchange’s customers.

False Representations Alleged

The lawsuit asserts that DCG and its CEO, Barry Silbert induced depositors to lend “huge amounts of cryptocurrency and U.S. Dollars” to Genesis through “false, misleading, and incomplete representations” of the company’s financial position and “robust risk-management practices.“

Seeking Relief

Gemini is seeking relief including actual damages, punitive damages, and attorney’s fees for fraud committed by DCG and Silbert.

Statement from Gemini Co-founder

Cameron Winklevoss commented on Twitter Friday saying „DCG — and Barry personally – are direct participants in the fraud that has damaged Gemini and hundreds of thousands of Earn users,“ adding „This complaint is an important step in holding them accountable for what they have done.“

Conclusion

After months of difficult negotiations with DCG over its customers‘ frozen funds, Gemini resorted to legal action as a last resort in order to gain restitution for those affected by alleged fraud committed by Barry Silbert and Digital Currency Group (DCG).