Gemini files lawsuit against DCG and Barry Silbert

• Allegations involve Genesis lender and Earn program

• Barry Silbert was charged with fraud while trying to renew the Earn program

• On July 4, Cameron Winklevoss warned he could sue

The American cryptocurrency exchange Gemini, led by Cameron Winklevoss, filed a lawsuit against the Digital Currency Group holding and its CEO Barry Silbert, accusing them of fraud against creditors.

In a New York court filing on July 7, Gemini alleges that DCG and Silbert were involved in a scheme that involved lending massive amounts of cryptocurrencies and US dollars to Genesis. The exchange is seeking to recover funds that were lost due to false, manipulative, incomplete statements by DCG and Silbert. In addition, the company plans to pursue legal options in the Genesis bankruptcy case.

A report by Cameron Winklevoss stated that Silbert had knowledge of the lender's insolvency but attempted to continue with the Earn program anyway. The complaint included allegations of false financial reporting beginning with the collapse of Three Arrows Capital in June 2022, which resulted in a balance sheet deficit. In addition, the Winklevoss brothers claim that Genesis and DCG owe $900 million to Gemini customers.

“DCG, Genesis, and Barry conspired to create false financial statements in order to hide the truth from Gemini and creditors. This fraudulent activity has reached its highest level. Silbert and other leaders were directly involved in this deception, lying again and again, ”said Cameron.

On July 4, Winklevoss issued an open letter threatening DCG's founder with a lawsuit if the conglomerate fails to repay a $1.46 billion debt to the exchange and its clients.

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