NEW YORK : Digital Currency Group on Thursday urged a U.S. judge to dismiss a lawsuit claiming it defrauded customers of Gemini Trust, which was founded by billionaire twins Tyler and Cameron Winklevoss, into lending money to its now-bankrupt Genesis Global Capital unit.
DCG and Silbert, who is also a defendant, called Gemini a"sophisticated market participant" that had told Gemini Earn customers, who were expecting high interest rates, that it had"thoroughly vetted" Genesis."That is not the law, and if it were, every parent would be liable for every public representation made by its subsidiary," DCG and Silbert said.Gemini in a complaint filed on July 7 accused DCG and Silbert of concealing a $1.
The lawsuit seeks compensatory and punitive damages. It was moved last week from a state court in Manhattan. According to the SEC and the Winklevosses, Genesis held about $900 million of assets from approximately 340,000 Gemini Earn customers before halting withdrawals last November.