Digital Currency Group Strikes Back: Motion to Dismiss Gemini’s Lawsuit Filed

Digital Currency Group (DCG) has filed a movement to dismiss the lawsuit introduced towards them by Gemini Trust Company, LLC. The movement, filed within the Southern District of New York, argues that Gemini’s allegations of fraudulent misrepresentations associated to the Gemini Earn program are with out benefit and inadequately substantiated. DCG’s authorized staff asserts that the lawsuit lacks actionable proof and requires the court docket to dismiss the grievance.

Digital Currency Group Seeks Dismissal of Gemini Lawsuit, Citing Lack of Evidence and Inadequate Allegations

In the preliminary assertion of the motion, DCG outlines Gemini’s claims associated to the Gemini Earn program, previously operated by Gemini in coordination with Genesis Global Capital, LLC (Genesis). DCG argues that Gemini’s allegations, aimed toward holding DCG and Barry Silbert liable for Genesis’s actions, are unfounded.

DCG’s movement additional factors out that Gemini’s allegations fail to adequately allege fraud by the defendants. The argument part of the movement elaborates that not one of the statements made by the defendants are actionable and that the defendants should not accountable for alleged misrepresentations by Genesis.

“Gemini argues that defendants aided and abetted Genesis’s alleged fraud through various corporate transactions and paperwork. This effort fares no better,” the letter supporting the movement to dismiss submitting revealed on August 10, 2023, explains. “There are no well-pled allegations that Defendants had actual knowledge of any alleged fraud, and Gemini does no more than rely on Defendants’ corporate relationship with Genesis to argue otherwise.”

In addition to the dearth of proof for fraudulent actions, DCG’s movement accuses Gemini of failing to plead information of the alleged fraud. They additional dismiss Gemini’s accusations as baseless, criticizing the dearth of considerable help for the claims. “The rest of the complaint is a hodgepodge of conclusory allegations against non-defendant Genesis,” DCG’s attorneys insist. The movement continues:

Gemini tries in varied methods to carry defendants liable for alleged misrepresentations by Genesis, however Gemini’s efforts to impute them to defendants fail as a matter of legislation. It is a settled precept of legislation that folks should not accountable for the conduct of their subsidiaries, and Gemini doesn’t even attempt to allege any principle of alter ego. Instead, it asserts that defendants are accountable for not affirmatively correcting the alleged misstatements of Genesis.

Digital Currency Group’s response to the lawsuit comes after Gemini co-founder Cameron Winklevoss publicly introduced authorized motion towards DCG and CEO Barry Silbert. Gemini’s lawsuit seeks to get better damages and losses incurred on account of alleged false and deceptive representations by DCG and Silbert. At the time, DCG stressed that the lawsuit was merely “another publicity stunt from Cameron Winklevoss to deflect blame.”

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