Winklevoss twins founded Gemini has accused Digital Currency Group of serious fraud. The cryptocurrency exchange has accused DCG of deceiving Genesis creditors. The new development has stunned the cryptocurrency world. Gemini’s legal side has used the word ‘gaslighting’ to describe DCG’s action. The accusations could have severe consequences for the Genesis bankruptcy court proceeding that is ongoing.
This bankruptcy case turned into a bone of contention within the crypto world immediately after being filed in the first quarter of 2022. Genesis is a cryptocurrency lending entity that went bankrupt following multiple reverses. It ruined or caused considerable losses to many of the creditors.
Barry Silbert-led leading blockchain investment company DCG has come out as among the key stakeholders in this case. They purportedly represent the interest of many Genesis creditors. The Gemini Trust legal team has put forward a strong objection to a DCG proposal that has been submitted on behalf of creditors of Genesis Global. The legal filing is on September 15 and has been filed at the US Bankruptcy Court in New York Southern District.
Attorneys From Gemini Allege DCG Indulging In Manipulation
Attorneys representing Gemini have said that DCG was indulging in tactics that they claim were manipulative. They said that DCG was making deceptive, inaccurate, and fabricated statements as part of the proposed plan of recovery. The recovery plan was filed on September 13 at the New York bankruptcy court. It put forward the argument that a section of unsecured creditors could be in line to receive a substantial percentage of the amount. They put forward a range between seventy and ninety percent. A considerable share of the recovered amount could be in cryptocurrencies.
Moreover, they have outlined expectations that around ninety-five to one hundred ten percent recovery for the claims by users of Gemini Earn. The attorneys alleged that DCG apparently intended to lure Gemini Lenders to take up an agreement that would allow the firm to accept way less than it was mandated to pay. The team stressed the necessity for DCG to enhance loan terms stretched to Genesis and not use the bankruptcy proceeding to justify illegal actions.