- The complaint claimed that DCG and Silbert defrauded creditors by keeping their money.
- Cameron claimed Barry Silbert had misled about the state of Genesis’ finances.
Cameron Winklevoss, the co-founder of Gemini, has declared that he has sued the Digital Currency Group (DCG) and its CEO, Barry Silbert, in his personal capacity.
The complaint claimed that DCG and Silbert defrauded creditors by keeping their money. This comes after Winklevoss, earlier this week, made the last offer to DCG to restore nearly $1 billion of its clients’ assets.
Misled Over Firm’s Finances
Cameron Winklevoss said in the document that in October of 2022, Gemini was prepared to cease offering the Earn product. Silbert, aware that Genesis was “massively insolvent,” persuaded them to go forward with the project anyhow.
The Winklevoss brother claimed that Barry Silbert had misled them about the state of Genesis’ finances. In June of 2022, when Three Arrows Capital (3AC) collapsed, Genesis’ problems really began.
Cameron stated:
“When Three Arrows Capital (3AC) collapsed in June 2022, it blew a $1.2 billion hole in Genesis’s balance sheet. Instead of coming clean, Genesis claimed that everything was business as usual because DCG had stepped in to absorb the losses.”
According to Cameron, Barry Silbert has meticulously constructed a lie. He further elaborates that DCG incurred no losses and contributed no real money. DCG issued a false 10-year promissory note to Genesis for $1.1 billion, but it was only worth a fraction of that since the interest rate was merely one percent. Genesis’ financial situation was dire.
Barry, DCG, and Genesis conspired to create phoney financial reports to deceive Gemini and its creditors. According to Cameron, one of these papers lied about the 10-year promissory note by labelling it a “Current Asset,” which was an intentional distortion of the truth.
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