Per a Bloomberg report, Digital Currency Group and its CEO Barry Silbert are moving to try to dismiss the lawsuit filed by their former partner, crypto exchange Gemini. The two entities have been in a legal battle since early 2023 due to its “Earn Program,” which collapsed with Genesis.
Barry Silbert Make His Move
In a document filed with the US Southern District of New York, Barry Silbert and the Digital Currency Group (DCG) requested Judge Lewis Liman to drop the case based on the Federal Rules of Civil Procedure.
According to Bloomberg, Silbert, and the crypto company claimed that Gemini has allegedly failed to present evidence to support the fraud charges. Furthermore, Silbert claims their former partners, Cameron Winklevoss and Tyler Winklevoss, engage in “character assassination.”
Failed company Genesis provided services to Gemini, allowing it to support its “Earn Program” and provide its users with yield for their cryptocurrencies. However, users could not withdraw their funds when the company went bankrupt, leading to a lawsuit against Gemini.
The Winklevoss-led company attempted to negotiate with DCG and Silbert, but the parties are yet to reach an agreement. In the meantime, users have been unable to withdraw their assets. The Winklevoss and Gemini are yet to issue an official statement as of this writing.
As for the DCG, the company is likely waiting to see if the US Securities and Exchange Commission (SEC) will approve a Bitcoin spot Exchange Traded Fund (ETF) in the country. This decision would allow them to potentially convert one of their subsidiaries, Grayscale, biggest products, into this financial instrument.
Thus, the company could see a fresh influx of capital, allowing it to weather out the crypto winter and stay afloat. Since the rumors of the SEC approving a Bitcoin spot ETF began circulating, the Grayscale Bitcoin Trust (GBTC) discount has declined.
The chart below shows that the discount between the GBTC and the Bitcoin spot price was around 40% in late June. In the following month, the gap closed, standing at 25%, and could continue to improve as a decision approaches.
As of this writing, Bitcoin trades at $29,400 with sideways movement on the daily chart.
Cover image from Unsplash, chart from Tradingview