Venture capital firm Digital Currency Group (DCG) filed on Thursday to dismiss the lawsuit against it and its CEO, Barry Silbert, by Gemini’s Cameron and Tyler Winklevoss.
According to DCG, the motion was submitted to the US District Court for the Southern District of New York.
DCG alleged in its filing that the initial lawsuit by the Winklevoss twins and their exchange were “a baseless continuation of Cameron and Tyler Winklevoss’ year-long Twitter-based character assassination and public relations campaign to deflect blame from their own mismanagement.”
“Defendants Digital Currency Group Inc. (DCG) and Barry Silbert (Silbert) respectfully submit this memorandum of law in support of their motion to dismiss the complaint under Rules 8.9(b) and 12(b)(6) of the Federal Rules of Civil Procedure,” the lawsuit stated.
DCG, Silbert, Not Appropriate Defendants
The venture capital firm stated that Gemini’s lawsuit failed to mention the actual defendant, Genesis Global Capital LLC. DCG noted that the Gemini Earn Product was an endeavor that the Winklevoss twins pursued with Genesis without its or Silbert’s involvement.
According to the lawsuit, DCG stated that the Earn Product clearly has Genesis as the borrower, the clients as the lenders, and Gemini as the custodian. Hence, the venture capital firm had nothing to do with the agreement, nor did it participate in the promotion or operation of the program.
DCG also noted that the Master Loan Agreement (MLA) binding Gemini’s endeavor with Genesis stated clearly that the crypto lender’s parent company or affiliate had no liability or obligation in the business. Hence, DCG asked the court to dismiss the lawsuit against it.
The Tussle Continues
The Winklevoss’ tussle with DCG to get back the $900 million stuck in Genesis takes another twist with the filing. With Genesis’s bankruptcy filing in January and the Earn Product placed as an unregistered product in the restructuring proceedings, Gemini has taken matters to the lender’s parent company, DCG.
Gemini has called out DCG and Silbert and threatened them with more lawsuits several times. The possibility of reimbursement remains slim, with DCG stating clearly that it is not liable for Genesis’ obligations.
