TechFlow news — Gemini co-founder Cameron Winklevoss has filed a lawsuit in a New York court against DCG and Barry Silbert personally. Winklevoss alleges that Barry Silbert was not only the mastermind behind DCG and Genesis’s fraudulent actions toward creditors, but also directly participated in the fraud.
According to the complaint, the story began when Gemini notified Genesis of its plan to terminate the Earn program in October 2022. Barry Silbert then arranged a meeting to persuade Gemini to continue the program. His actions indicated he was fully aware that Genesis was already severely insolvent. Silbert claimed that "it's just a matter of time" for Genesis, a lie designed to conceal the massive hole in Genesis’s balance sheet. When Three Arrows Capital (3AC) collapsed in June 2022, Genesis faced a $1.2 billion shortfall on its balance sheet, yet instead of disclosing this, Genesis claimed everything was fine because DCG had absorbed the losses.
Winklevoss stated this was an elaborate deception—DCG did not absorb any losses nor provide real capital. Instead, DCG backed Genesis with a fictitious 10-year note bearing only a 1% interest rate, worth only a fraction of its $1.1 billion face value. Genesis was deeply insolvent. Barry Silbert, DCG, and Genesis conspired to falsify financial reports to hide the truth from Gemini and other creditors. This fraud reached the highest levels. Barry Silbert and other DCG executives were directly involved in these lies, repeatedly deceiving Gemini and other creditors.
