Winklevoss Claims Genesis Owes Earn Investors
Cameron Winklevoss, co-founder of crypto exchange Gemini Trust Co with his twin brother, accused CEO of Digital Currency Group Barry Silbert of "bad faith stall tactics" on Monday and demanded that he commit to settling $900 million in disputed client assets by 8 January.
Winklevoss says Genesis owes more than $900 million
In partnership with DCG's crypto company Genesis, Gemini offers a crypto financing product called Earn. Following the bankruptcy of major cryptocurrency exchange FTX in November, they froze customer withdrawals.
Winklevoss stated that Genesis owed about $900 million to around 340,000 Earn investors and that he had been attempting to achieve a "consensual resolution" with Silbert for the previous six weeks.
"Over the past six weeks, we have done all we can to engage with you in good faith and collaboratively in an attempt to seek a consensual settlement for you to return the $900 million that you owe while also assisting you in the preservation of your business," Winklevoss said in his letter. "However, it is now evident that you have been using deceptive delay tactics.
Winkelvoss's open letter to Silbert and his response
"However, it is now evident that you have been participating in bad faith delay tactics," Winklevoss stated in a Twitter https://twitter.com/cameron/status/1609913051427524608?s=20&t=belP_IbOFb4yt9f9xIG4Aw to Silbert. "We are asking you to commit to collaborating to fix this problem by 8 January, 2023," he continued.
The letter should have specified what would happen if an agreement with Silbert was reached by 8 January. Winklevoss responded that DCG owed Genesis $1.675 billion, which Genesis owed to Earn users and other creditors, adding that "this disaster is all of your inventions".
In a tweet, Silbert stated that DCG had not borrowed $1.675 billion from Genesis. In his opinion, DCG has never missed an interest payment to Genesis.
It has no loans outstanding, adding that on 29 December, DCG delivered a proposal to Genesis and Winklevoss' counsel and has yet to get a response.
Genesis said in a letter to clients on 7 December that it was trying to safeguard client assets and increase liquidity, but that it would take weeks rather than days to develop a plan.
Author: Emmanuel Baiden
7 years experience within the financial services sector most notably in Sales, Trading, research and writing articles within the crypto space. I have a bachelor's degree in International Business and a Master's in Investment and Risk Finance . I am also an associate member of the Chartered Institute for Securities and Investment.