Gemini sues DCG and Barry Silbert, accusing them of direct involvement in and execution of fraud

ChainCatcher news reports that Cameron Winklevoss, co-founder of Gemini, tweeted that Gemini has filed a lawsuit against DCG and its founder Barry Silbert. It is reported that Barry was directly involved in fraudulent activities, as he lured Gemini to continue the Earn program when Gemini notified Genesis that it would terminate the Earn program in October 2022, despite knowing that Genesis was severely insolvent.

When Three Arrows Capital (3AC) collapsed, it left a $1.2 billion hole in Genesis's balance sheet. Genesis claimed everything was normal, as DCG claimed to have intervened to absorb the losses at that time. Winklevoss pointed out that this was a carefully crafted lie; DCG did not absorb any losses and did not provide any real capital. In fact, DCG wrote a fake 10-year note for Genesis with an interest rate of only 1%, worth only a small fraction of its $1.1 billion face value, resulting in Genesis being insolvent.

Barry Silbert and other DCG executives were directly involved in these lies, concealing the truth from Gemini and other creditors. (Source link)