Crypto broker Genesis, which is owned by Digital Currency Group (DCG), is in a bad place. Corporate lending branch Customer withdrawals stopped In mid-November FTX fallIt is said to be owed to users of Gemini’s Earn cryptocurrency exchange product About 900 million dollars. Now a Gemini co-founder is calling out DCG’s CEO for what he calls “bad stalling tactics.”
Gemini Co-Founder, Cameron Winklevoss tweet an open letter to DCG founder and CEO Barry Silbert on Monday, addressing what he described as evasive tactics by DCG and Silbert as they work together to resolve the situation.
Gemini has repeatedly tried to work out a “consensual resolution” to the dispute with DCG and Genesis to return the money to users, Winklevoss wrote, but alleged that Silbert and his company had slowed the process.
“We appreciate that there are start-up costs to any restructuring, and sometimes it doesn’t happen as quickly as we all would like,” Winklevoss wrote. “But now it has become clear that you have engaged in ill-intentioned stable tactics.”
Winklevoss, who founded Gemini with his twin brother Tyler, writes that Silbert has so far refused to “get in a room” with Gemini driving things apart, along with refusing to “agree to a timeline of major milestones.”
“After six weeks, your behavior is not only completely unacceptable, it is unacceptable,” Winklevoss added. “The idea in your mind that you can hide quietly in your ivory tower and everything will magically disappear, or that this is someone else’s problem, is pure fantasy.”
A $1.7 billion battle
Winklevoss noted that DCG owes Genesis $1.675 billion, citing aggregate figures provided by Silbert. With investors in november. This figure includes a $575 million loan due in May, as well as a $1.1 billion promissory note due in June 2032 linked to The collapse of Three Arrows Capital.
In a response to a tweet, Silbert Refute framing about the money DCG owes Genesis, while claiming that DCG recently sent out an offer to both Gemini and Genesis.
DCG did not borrow $1.675 billion from Genesis
DCG has never missed an interest payment for Genesis and is applicable to all outstanding loans; The next loan maturity is May 2023
DCG submitted a proposal to Genesis and your advisors on December 29 and has not received a response
DCG did not borrow $1.675 billion from Genesis. DCG has never missed an interest payment for Genesis and is applicable to all outstanding loans; The next loan is due in May 2023,” Silbert tweeted at Winklevoss. “DCG submitted an offer to Genesis and your advisors on December 29 and has not received a response.”
Winklevoss asked Sylbert to publicly commit to resolving the crisis by January 8, but did not indicate any possible consequences or future actions if Sylbert did not comply. In a follow-up tweet, Winklevoss added“Will you or will you not commit to resolving this by January 8th in a way that treats the $1.1 billion promissory note as $1.1 billion?”
What is Gemini earning?
Gemini Earn is a high-yield savings product that offers customers up to 8% annual return on crypto deposits, depending on the assets held. Genesis served as Gemini’s primary loan partner, and after Genesis Withdrawal of canceled loans in NovemberTwins Withdrawals likewise stopped to its users.
Winklevoss pegged the total amount of funds owned by Genesis to Gemini Earn customers at more than $900 million, reflecting 900 million dollars reported by economic times At the beginning of December. Last week Gemini clients File a class action v. Company claiming that Earn’s interest bearing products should have been registered as securities.
in a November letterSilbert sought to reassure investors that DCG faced no imminent threat amid the industry-wide shock waves following the collapse of FTX. However, the company is allegedly suffering from liquidity problems, as both have indicated by the Creditors Committee It works out Gemini’s problems, too Through the Dutch crypto exchange Bitvavo.
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