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Crypto firm Gemini sues DCG after conflict over unit’s restructuring deal

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(Reuters) – Cryptocurrency firm Gemini, the largest creditor of bankrupt crypto lending firm Genesis, sued Digital Currency Group (DCG) and its CEO on Friday after a dispute over a restructuring deal for the venture capital firm’s troubled unit.

DCG and Gemini, the two most prominent players in the crypto industry, have clashed several times over the past few months following the collapse of Genesis, which had filed for bankruptcy in January.

Gemini has accused DCG and CEO Barry Silbert of “fraud” and “deception.”

The dispute came to a head earlier this week after Gemini set a deadline to come to terms on a restructuring agreement by Thursday afternoon, failing which it would pursue litigation.

Although lending unit of Genesis had initially outlined a plan to exit bankruptcy by May, it has yet to reach an agreement on a restructuring plan with creditors, to whom it owes more than $3 billion, according to court filings.

(Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel and Shinjini Ganguli)

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