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,
according to court filings. Gemini is seeking to recoup more than $1.1 billion
from Genesis. © Reuters
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