per Bloomberg a reportand Digital Currency Group and its CEO Barry Silbert are trying to dismiss a lawsuit filed by their former partner, cryptocurrency exchange Gemini. The two entities have been in a legal battle since early 2023 over the “Earn Program”, which collapsed with Genesis.
Barry Silbert is moving
In a document filed with the US Southern District of New York, Barry Silbert and the Digital Currency Group (DCG) asked Judge Louis Lehman to drop the case based on federal rules of civil procedure.
According to Bloomberg, Silbert and the crypto company alleged that Gemini had failed to provide evidence to support fraud charges. Furthermore, Silbert claims that their former partners, Cameron Winklevoss and Tyler Winklevoss, are engaging in “character assassination”.
The failed company, Genesis, provided services to Gemini, allowing it to support its “earning program” and provide its users with a return on their cryptocurrency. However, users were unable to withdraw their funds when the company went bankrupt, which led to a lawsuit against Gemini.
The company led by Winklevoss has attempted to negotiate with DCG and Silbert, but the parties have not yet reached an agreement. Meanwhile, users were unable to withdraw their assets. Winklevoss and Gemini haven’t issued an official statement as of this writing.
As for DCG, the company will likely have to wait to see if the US Securities and Exchange Commission (SEC) approves an exchange-traded fund (ETF) in the country. This decision will allow them to convert one of their largest products, Grayscale, into this financial instrument.
Thus, the company could witness a fresh influx of capital, allowing it to weather the cryptocurrency winter and stay afloat. Since rumors of the approval of a Bitcoin ETF began circulating, Grayscale Bitcoin Trust (GBTC) discount has been dropping.
The chart below shows that the discount between GBTC and Bitcoin spot price was around 40% in late June. The following month, the gap closed, at 25%, and could continue to improve as the decision gets closer.
As of this writing, Bitcoin is trading at $29,400 with sideways movement on the daily chart.
Cover image from Unsplash, chart from Tradingview