Gemini Trust Company has sued Digital Currency Group and CEO Barry Silbert for fraud, according to a complaint filed Friday.
Cameron Winklevoss, the co-founder of Gemini, has disclosed that they have sued the Digital Currency Group (DCG) and its leader Barry Silbert individually. According to the lawsuit, DCG and Silbert were charged with defrauding the creditors and neglecting to return their money.
This change occurred after Winklevoss made DCG its final offer earlier this week to repay more than $1 billion in customer monies.In its filing, Cameron Winklevoss says that Gemini has shown a willingness to stop producing its Earn product in October 2022.
Silbert persuaded them to keep selling the goods even though he knew Genesis was “massively insolvent”.Despite significant gaps in Genesis’s balance statement, the Winklevoss twin claimed that Barry Silbert had lied.
Genesis’ problems began in June 2022 after Three Arrows Capital (3AC) collapsed. Cameron reveals this in his writing: The demise of Three Arrows Capital (3AC) in June 2022 left Genesis’s balance sheet with a $1.2 billion hole. Instead of telling the truth, Genesis asserted that things were unaffected since DCG had stepped in to cover the losses.
Barry Silbert has meticulously built a deception, according to the Winklevoss twin. He further clarifies that DCG didn’t incur losses or provide genuine money.
DCG secretly sent Genesis a phony 10-year promissory note with a nominal 1% interest rate worth only a small portion of its advertised $1.1 billion value.
Financially, Genesis was in a terrible situation. In order to deceive Gemini and creditors, Barry, DCG, and Genesis worked together to create false financial records.
According to Cameron, one of these papers incorrectly listed the fake 10-year promissory note as a “Current Asset,” which was a flat-out falsehood and a purposeful misrepresentation of the facts. He stated:
“This fraud goes to the very top. Barry Silbert and other DCG executives were directly involved in these lies and they lied again and again to conceal the truth from Gemini and other creditors. DCG then-COO (and current President) directly lied when he told a creditor that DCG had absorbed the 3AC losses,”
