Aaryamann Shrivastava
FXStreet
- Digital Currency Group and CEO Barry Silbert filed a motion in a US court to dismiss the lawsuit filed by Gemini last month.
- Gemini claimed that Silbert and his company engaged in fraud and deception, with the issue originating from their collaboration on the Earn program.
- The lawsuits emerged months after the SEC first sued both Gemini and Genesis in January for their Earn program, deemeda violation of Securities law.
The crypto space has become more than well-versed with lawsuits at this point, whether they may be coming from the authorities or from market players. Such is the case with Digital Currency Group (DCG), which is looking to put an end to the lawsuit filed against it.
Digital Currency Group vs Gemini
Last month, the Winklevoss brothers’ managed company, Gemini, filed a lawsuit against Digital Currency Group and its CEO Barry Silbert. The latter is the parent company of Genesis; the firm Gemini has been engaged in a dispute since November last year.
Initially running a lending program together (Earn program), the two had a falling out following accounting issues at the end of Genesis, following which DCG halted withdrawals and blocked the users’ money. The issue is yet to be resolved.
However, last month Gemini filed a lawsuit alleging DCG and its CEO of conducting fraud and deception. In response, Digital Currency Group filed a motion to dismiss the lawsuit in a US court this week. The company, along with CEO Silbert, stated that Gemini failed to properly claim fraud and accused the company and founders Cameron and Tyler Winklevoss of engaging in a “character assassination campaign” against DCG and Silbert.
Both Gemini and Genesis are yet to respond to the request for a comment, but it seems likely that the case may not be dismissed so easily as over $1.1 billion worth of assets of Earnprogram users remain trapped to date.
Apart from each other, both Gemini and Genesis are also recipients of a lawsuit from the Securities and Exchange Commission (SEC). The regulatory body sued the companies at the beginning of this year for their joint lending program - Earn - which according to the SEC, violated Securities laws.
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