Gemini earn users have launched a class action lawsuit against crypto broker genesis and its parent company digital currency group (dcg). the claimants allege that genesis and dcg breached their contract with them by attempting to conceal their insolvency and engaging in the sale of unregistered securities. gemini founder cameron winklevoss also accused silbert of “bad faith stall tactics” over $900 million in locked funds reportedly owed to gemini earn customers.
Alleged breach of contract occurred in the summer of 2022. the suit claims that dcg attempted to “buy” the right to collect a $2.3 billion debt owed to genesis by insolvent singapore hedge fund three arrows capital for a promissory note of $1.1 billion due in 2033. this failure to cure the insolvency, and “continued representations” that it was not insolvent, constituted “events of default”.
Suit alleges that genesis attempted to conceal its insolvency via a “sham transaction” involving debt owed by bankrupt crypto hedge fund three arrows capital. gemini earn customers are owed $900 million in locked funds. time is running out for genesis to work with gemini to “end this nightmare.” the claimants allege that genesis and dcg attempted to conceal their insolvency and engage in the sale of unregistered securities in order to avoid paying out customers and creditors.