- Crypto analyst offers $1k for DCG’s IP and brands.
- Gemini files a lawsuit against DCG and its founder Barry Silbert.
- The suit accused them of orchestrating a massive fraud scheme.
Renowned Adjunct Professor of Information Science and Business Analysis, Adam Cochran, has taken a bold stance in the ongoing controversy surrounding Digital Currency Group (DCG) and its founder, Barry Silbert.
In an open letter addressed to Silbert, Cochran expressed his intentions to bid $1,000 for DCG’s intellectual property (IP), brands, and self-issued promissory notes. As an intriguing twist, Cochran also proposed using Silbert’s likeness to create “Big Week” meme shirts.
Notably, Cochran’s offer comes amid a legal storm as Cameron Winklevoss, Gemini co-founder, filed a lawsuit against DCG and Silbert personally in a New York court.
Gemini’s lawsuit unveils shocking allegations against Silbert, accusing him of being the mastermind behind the fraudulent activities conducted by DCG and its subsidiary, Genesis. According to the complaint, Silbert was not only aware of the dire financial situation of Genesis but also actively participated in perpetrating fraud against creditors.
The lawsuit points to a pivotal moment when Gemini informed Genesis about the termination of the Earn program in October 2022. In response, Silbert allegedly met with Gemini to induce them to reconsider their decision, despite Genesis being significantly insolvent.
The lawsuit claims that Silbert cunningly concealed the extent of Genesis’ financial troubles by asserting that the company faced only a temporary timing issue, effectively masking the substantial hole in Genesis’ balance sheet caused by the collapse of Three Arrows Capital (3AC) in June 2022.
Genesis misleadingly declared that DCG had absorbed the losses, presenting a facade of business as usual. However, Gemini’s complaint reveals this to be a carefully constructed lie, with DCG failing to absorb any losses or provide real capital.
Instead, DCG allegedly issued a sham 10-year promissory note to Genesis, carrying an insignificant 1% interest rate and worth only a fraction of its face value of $1.1 billion. The suit revealed that this supposed deceptive promissory note was falsely represented as a “Current Asset” on fabricated financial reports. At the same time, a falsified balance sheet claimed its value as a “receivable” at $1.1 billion.
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