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

Digital Currency Group (DCG) has filed a question to disregard the suit brought against them by Gemini Trust Company, LLC. The motion, filed successful the Southern District of New York, argues that Gemini’s allegations of fraudulent misrepresentations related to the Gemini Earn programme are without merit and inadequately substantiated. DCG’s ineligible squad asserts that the suit lacks actionable grounds and calls for the tribunal to disregard the complaint.

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

In the preliminary connection of the motion, DCG outlines Gemini’s claims related to the Gemini Earn program, formerly operated by Gemini successful coordination with Genesis Global Capital, LLC (Genesis). DCG argues that Gemini’s allegations, aimed astatine holding DCG and Barry Silbert liable for Genesis’s actions, are unfounded.

DCG’s question further points retired that Gemini’s allegations neglect to adequately allege fraud by the defendants. The statement conception of the question elaborates that nary of the statements made by the defendants are actionable and that the defendants are not liable for alleged misrepresentations by Genesis.

“Gemini argues that defendants aided and abetted Genesis’s alleged fraud done assorted firm transactions and paperwork. This effort fares nary better,” the letter supporting the question to disregard filing published connected August 10, 2023, explains. “There are nary well-pled allegations that Defendants had existent cognition of immoderate alleged fraud, and Gemini does nary much than trust connected Defendants’ firm narration with Genesis to reason otherwise.”

In summation to the deficiency of grounds for fraudulent actions, DCG’s question accuses Gemini of failing to plead cognition of the alleged fraud. They further disregard Gemini’s accusations arsenic baseless, criticizing the deficiency of important enactment for the claims. “The remainder of the ailment is simply a hodgepodge of conclusory allegations against non-defendant Genesis,” DCG’s attorneys insist. The question continues:

Gemini tries successful assorted ways to clasp defendants liable for alleged misrepresentations by Genesis, but Gemini’s efforts to impute them to defendants neglect arsenic a substance of law. It is simply a settled rule of instrumentality that parents are not liable for the behaviour of their subsidiaries, and Gemini does not adjacent effort to allege immoderate mentation of change ego. Instead, it asserts that defendants are liable for not affirmatively correcting the alleged misstatements of Genesis.

Digital Currency Group’s effect to the lawsuit comes aft Gemini co-founder Cameron Winklevoss publically announced ineligible enactment against DCG and CEO Barry Silbert. Gemini’s suit seeks to retrieve damages and losses incurred arsenic a effect of alleged mendacious and misleading representations by DCG and Silbert. At the time, DCG stressed that the suit was simply “another publicity stunt from Cameron Winklevoss to deflect blame.”

What bash you deliberation astir DCG’s question to dismiss? Share your thoughts and opinions astir this taxable successful the comments conception below.