Gemini Lawsuit Alleges Fraud by Barry Silbert and Digital Currency Group

Gemini Trust Company has filed a lawsuit accusing Digital Currency Group (DCG) and its CEO Barry Silbert of fraud. The lawsuit alleges that DCG and Silbert made false representations and omissions to Gemini regarding the Gemini Earn program, which allowed users to earn interest on their crypto assets. Gemini claims that DCG-owned Genesis, the primary partner for the program, recklessly lent funds to a counterparty engaged in a risky trading strategy, contrary to what Gemini was led to believe. DCG has denied the allegations, calling them baseless and defamatory. The lawsuit follows a public battle between Gemini and Genesis over repayment of a $900 million loan.