• Digital Currency Group (DCG) and its CEO Barry Silbert filed a motion to dismiss the fraud lawsuit against Gemini.
• The lawsuit arose from debt the crypto exchange Gemini allegedly owes to users of their Earn program.
• Gemini claims that DCG and Silbert fraudulently helped Genesis induce depositors to continue lending despite knowing that the firm had suffered financial losses.
Digital Currency Group Files To Dismiss Fraud Lawsuit
Digital Currency Group (DCG) and its CEO Barry Silbert have filed a motion asking the court to dismiss the lawsuit arising from the debt the crypto exchange Gemini says is owed to users of their Earn program.
Background of Lawsuit
Gemini Earn enabled customers to loan their crypto assets to institutional borrowers and earn interest, however when Genesis became insolvent, it defaulted on $1.2 billion worth of assets belonging to 232,000 Earn users. As a result, last month Gemini filed a suit claiming that DCG and Silbert helped Genesis induce depositors to continue lending despite knowing that the firm had faced massive financial losses following Three Arrows Capital’s collapse.
Motion Filed By DCG & Silbert
The law firm Weil, Gotshal & Manges representing DCG and Silbert submitted a court filing asking for dismissal of the complaint stating: “Defendants Digital Currency Group, Inc. and Barry Silbert, by and through their undersigned counsel, hereby move this Court before the Honorable Lewis J. Liman…for an Order…dismissing with prejudice the Complaint in this action…”
What Gemini Wants To Recover
The Winklevoss twins’ exchange seeks damages and losses sustained from alleged fraudulent acts committed by Genesis, DCG and Silbert stating: “Defendants are jointly liable for one another’s tortious conduct directed towards Gemini…“
Conclusion
It remains uncertain whether or not this motion will be approved by courts but judging from past cases it appears likely that it will be accepted given how both parties are willing go through legal proceedings rather than settling out of court.