DCG, or Digital Currency Group, has filed a motion to dismiss a lawsuit brought by cryptocurrency exchange Gemini last month. Gemini had alleged that DCG and its founder, Barry Silbert, had committed fraud through DCG’s Genesis subsidiary, which held funds for Gemini’s Earn program.
In response, DCG said that Gemini had not supported its fraud claims in the lawsuit. DCG also said that Gemini’s July complaint was an effort to deflect blame by contriving a public, Twitter-based character assassination campaign against Defendant DCG (Genesis’ indirect parent) and Silbert (DCG’s founder) — neither of whom operated, oversaw or had any substantive involvement with the Gemini Earn program.
A critical component of Gemini’s complaint concerned claims that DCG and Silbert had assured the Winklevoss twins, during a meeting in the summer of last year, that DCG had absorbed a $1.1 billion hole left in the Genesis balance sheet caused by the 3AC collapse. DCG, in its dismissal, said Gemini “does not explain” why the representation made by Silbert at a lunch meeting with a Gemini co-founder was fraudulent.
At its core, the lawsuit is a continuation of the Winklevoss’ year-long Twitter-based character assassination and public relations campaign against DCG and Barry Silbert to deflect blame from their own mismanagement, a representative for DCG said via email.