- US-based cryptocurrency exchange Gemini has filed a lawsuit against Digital Currency Group and its CEO, Barry Silbert.
- Gemini’s co-founder, Cameron Winklevoss, accuses Silbert of personally and directly participating in fraudulent activities against creditors of DCG and Genesis.
- The lawsuit comes in the wake of Genesis’s bankruptcy, which left the fate of cryptocurrencies belonging to Gemini’s 232,000 users uncertain.
Gemini Takes Legal Action Against Digital Currency Group and CEO Barry Silbert
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In a recent development in the cryptocurrency world, Gemini, a US-based cryptocurrency exchange, has initiated a lawsuit against Digital Currency Group (DCG) and its CEO, Barry Silbert. The allegations put forth by Gemini’s co-founder, Cameron Winklevoss, are serious, accusing Silbert of not only architecting and masterminding fraudulent activities against DCG and Genesis’s creditors but also of personally and directly participating in these activities.
The Genesis Bankruptcy Controversy
Genesis, a company under the umbrella of DCG, was among several cryptocurrency companies that declared bankruptcy last year. This development has had significant implications for Gemini, as Genesis was a business partner that Gemini relied on to offer interest income on cryptocurrencies to its users. The bankruptcy of Genesis has left the fate of cryptocurrencies belonging to Gemini’s 232,000 users uncertain. Gemini alleges that Genesis has failed to return $1.1 billion worth of cryptocurrency.
The Ongoing Tension Between Gemini and DCG
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The relationship between Gemini and DCG, along with its CEO Barry Silbert, has been strained for approximately 1.5 years. This tension was evident when Gemini ended its “Gemini Earn” program. Adding to the complexity of the situation, the SEC filed a lawsuit against Genesis and Gemini in January for the unregistered sale of assets considered investment contracts.