In an open letter, Cameron Winklevoss, the founder and CEO of Gemini exchange, has accused Digital Currency Group (DCG) and its CEO Barry Silbert of fraudulent behavior and playing the victim card. The allegations stem from delays in resolving issues with Genesis, the lending platform behind Gemini’s Earn program, which owes $1.2 billion to Gemini’s 232,000 Earn customers.
Winklevoss claims that DCG intentionally abused the mediation process to delay the resolution, allowing them to avoid paying the $630 million owed to Genesis. He criticizes Silbert for portraying himself as a victim despite owing billions of dollars to numerous people. Winklevoss even compares Silbert’s delusion to that of Sam Bankman-Fried, another prominent figure in the crypto industry.
Gemini’s Earn Program and Genesis Bankruptcy
Gemini had promised high returns to depositors through its Earn program, but Genesis suspended withdrawals in November due to market turmoil and filed for bankruptcy in January. Since then, Gemini has been seeking to recover the funds owed by Genesis. However, multiple delays have led Winklevoss to issue an ultimatum to Silbert: accept Gemini’s final offer or face a lawsuit.
Winklevoss’ Ultimatum and Offer
The offer presented by Winklevoss includes payment deadlines and amounts totaling $1.47 billion. He proposes that the payments be made in Bitcoin, Ether, and the US dollar, with funds sourced from Genesis Global Trading, potential payouts from FTX and Alameda Research’s bankruptcy estates, as well as tokens from Avalanche and Near that may be claimed from Three Arrows Capital’s bankruptcy estate.
Winklevoss emphasizes that the delays have resulted in ballooning professional fees, exceeding $100 million, which have negatively impacted Gemini’s customers. He expresses his frustration and determination to resolve the matter, setting a deadline for Silbert’s response.
The article highlights the ongoing legal dispute between Gemini and DCG, shedding light on the alleged fraudulent behavior surrounding the Genesis bankruptcy. It also emphasizes the significance of the cryptocurrency industry and the need for clear regulations to prevent such situations in the future.