(New all through, provides allegations in lawsuit, DCG remark, Gemini searching for to recoup $1.1 billion)
By Niket Nishant and Hannah Lang
July 7 (Reuters) –
Cryptocurrency trade Gemini, the most important creditor of bankrupt crypto lending agency Genesis, sued mother or father firm Digital Foreign money Group (DCG) and its CEO, the day after DCG missed the trade’s deadline for agreeing to a restructuring deal for the enterprise capital agency’s troubled unit.
DCG and Gemini, two distinguished gamers within the crypto trade, have clashed a number of instances over the previous few months following the collapse of Genesis, which filed for chapter in January.
The lawsuit alleges DCG and its CEO Barry Silbert misrepresented the accounting therapy of sure liabilities that DCG assumed from Genesis because of losses Genesis suffered from the collapse of Singapore-based crypto hedge fund Three Arrows Capital in June 2022.
In an announcement, a DCG spokesperson mentioned it expects to quickly convey the Genesis chapter case to an in depth.
“Any suggestion of wrongdoing by DCG or any of its staff is baseless, defamatory, and utterly false. From day one, DCG has remained dedicated to reaching an amicable resolution for all events to the Genesis chapter,” the spokesperson mentioned.
The dispute between Gemini and DCG got here to a head earlier this week after Gemini set a deadline for DCG to comply with a restructuring deal by Thursday afternoon. Gemini’s co-founder Cameron Winklevoss had mentioned that after that deadline, his firm would sue DCG and Silbert.
Though the lending unit of Genesis had initially outlined a plan to exit chapter by Might, it has but to succeed in an settlement on a restructuring plan with collectors, to whom it owes greater than $3 billion, in response to court docket filings. Gemini is searching for to recoup greater than $1.1 billion from Genesis. (Reporting by Niket Nishant in Bengaluru and Hannah Lang in Washington; Modifying by Maju Samuel, Shinjini Ganguli and David Gregorio)
