Genesis Creditor Gemini Sues Parent Company Digital Currency Group, CEO

The lawsuit alleges DCG and its CEO Barry Silbert misrepresented the accounting treatment of certain liabilities that DCG assumed from Genesis.

By Reuters | Updated: 8 July 2023 00:27 IST

The dispute between Gemini and DCG came to a head earlier this week

Highlights

DCG and Gemini, prominent players in crypto sector, clashed several times
DCG spokesperson expects to soon bring Genesis bankruptcy case to a close
Genesis filed for bankruptcy in January

Cryptocurrency exchange Gemini, the largest creditor of bankrupt crypto lending firm Genesis, sued parent company Digital Currency Group (DCG) and its CEO, the day after DCG missed the exchange's deadline for agreeing to a restructuring deal for the venture capital firm's troubled unit.

DCG and Gemini, two prominent players in the crypto industry, have clashed several times over the past few months following the collapse of Genesis, which filed for bankruptcy in January.

The lawsuit alleges DCG and its CEO Barry Silbert misrepresented the accounting treatment of certain liabilities that DCG assumed from Genesis as a result of losses Genesis suffered from the collapse of Singapore-based crypto hedge fund Three Arrows Capital in June 2022.

In a statement, a DCG spokesperson said it expects to soon bring the Genesis bankruptcy case to a close.

"Any suggestion of wrongdoing by DCG or any of its employees is baseless, defamatory, and completely false. From day one, DCG has remained committed to reaching an amicable solution for all parties to the Genesis bankruptcy," the spokesperson said.

The dispute between Gemini and DCG came to a head earlier this week after Gemini set a deadline for DCG to agree to a restructuring deal by Thursday afternoon. Gemini's co-founder Cameron Winklevoss had said that after that deadline, his company would sue DCG and Silbert.

Although the lending unit of Genesis had initially outlined a plan to exit bankruptcy by May, it has yet to reach an agreement on a restructuring plan with creditors, to whom it owes more than $3 billion (nearly Rs. 24,800 crore), according to court filings. Gemini is seeking to recoup more than $1.1 billion (nearly Rs. 9,100 crore) from Genesis.

© Thomson Reuters 2023

Is the Xiaomi Pad 6 the best Android tablet you can buy under Rs. 30,000 in India? We discuss the company's latest mid-range tablet on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.