Digital Currency Group lawyers claim that Gemini's lawsuit is a “continuation of <a> public relations campaign.”
The Digital Currency Group (DCG) has countered a lawsuit by the cryptocurrency exchange Gemini suggesting the allegations of fraud are more PR tactics than legitimate concerns.
On August 10th, an official document was submitted to the United States District Court for the Southern District of New York. In this document, legal representatives for DCG and its head, Barry Silbert, claimed that Gemini's July lawsuit appears more as a “continuation of <a> public relations campaign.”
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The lawyers further emphasized that the lawsuit intentionally attacked the firm with "personal, vicious, and false” assertions on social platforms.
It is worth noting that, in its lawsuit, Gemini claimed that “DCG’s and Silbert’s false, misleading, and incomplete representations” caused the firm to lose a significant amount of funds. The crypto exchange also accused both entities of "encouraging and facilitating Genesis’s fraud against Gemini.”
For context, Genesis, a subsidiary under DCG's umbrella, took charge of the Earn program initiated in 2021 in alliance with Gemini. This initiative assured Gemini investors that their loaned crypto to Genesis would reap interest-based returns. But by November 2022, in light of what was termed "unprecedented market turmoil," Genesis barred all withdrawals and proceeded with a Chapter 11 bankruptcy filing by January 2023.
In the recent DCG filing, the lawyers argued that both Silbert and DCG had "minimal involvement with the Gemini Earn program." The document further stated that Gemini's accusations lacked substantial proof, asserting:
The Complaint is a hodgepodge of conclusory allegations against non-defendant Genesis, all belied by the fact that Gemini has not filed these spectacular claims in the Genesis bankruptcy.
Following the lawsuit, Gemini's founders, Cameron and Tyler Winklevoss, have maintained that both Genesis and DCG are obliged to pay back its crypto exchange's clientele around $900 million.
As the legal tussles unfold, the intricacies of the relationships and operations between Gemini, DCG, and Genesis come to light, reinforcing the importance of regulatory scrutiny and due diligence in the dynamic world of cryptocurrency. The implications of these lawsuits might set precedents for future crypto dealings and partnerships.
