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Gemini exchange officially accuses Genesis' parent company DCG and founder Barry Silbert of conspiracy to commit fraud

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Gemini exchange officially accuses Genesis

The cryptocurrency exchange Gemini has finally filed a lawsuit on 7/7 after its founder, the Winklevoss brothers, repeatedly warned the parent company of DCG Group, Grayscale Investments, and its founder Barry Silbert to repay the debt or face legal action.

Learn more about the ultimatum Gemini issued to the founders of DCG.

Winklevoss Statement: Lawsuit Filed Against DCG and Barry Silbert

Gemini has filed a lawsuit against DCG Group and its founder Barry Silbert in New York on 7/7. Cameron Winklevoss, co-founder of Gemini, stated that Barry Silbert was not only the designer and mastermind behind the fraudulent actions towards creditors by DCG and the bankrupt company under Genesis DCG, but he was also directly involved in it.

Cameron Winklevoss mentioned that the complaint explains the whole story. When Gemini notified Genesis of the termination of the Earn program in October 2022, Barry led a meeting to persuade Gemini to continue the Earn program. It was already known that Genesis was severely insolvent. Barry claimed that Genesis was only facing a timing issue, but this was a lie about a huge loophole hidden in Genesis' balance sheet.

Three Arrows Capital, 3AC, left a $1.2 billion hole in Genesis' balance sheet when it collapsed in June 2022. Genesis did not disclose this, claiming everything was fine because DCG had intervened and absorbed Genesis' losses.

Cameron Winklevoss stated that this was a carefully planned lie. DCG did not absorb any losses and did not provide real capital. DCG issued a fake 10-year promissory note to Genesis with an interest rate of only 1%, far below the face value of $1.1 billion. Genesis' debt exceeded its assets.

Winklevoss Statement: DCG Group Conspired to Deceive

Cameron Winklevoss stated that Barry, DCG, and Genesis conspired to commit financial fraud, with one report falsely claiming that the 10-year promissory note was a "current asset," which was a complete lie and distortion of facts. The falsified balance sheet pretended that this note was a $1.1 billion "receivable." Genesis even pretended on the report that this promissory note did not exist.

When Genesis spread fraudulent financial statements, DCG's then COO, Mark Murphy, knew the report was lying and exaggerated DCG's financial support for Genesis.

Cameron Winklevoss believes DCG should take responsibility for all Gemini Earn users and more creditors and looks forward to a judgment in court.

Complaint Document

DCG Response: Allegations Are Untrue

In response, DCG Group stated that Gemini's accusations against DCG are all untrue, and they will continue to be responsible for creditors in accordance with Genesis' bankruptcy restructuring process.