Jan. 2 “marks 47 days since Genesis halted withdrawals,” Cameron Winklevoss, cofounder of the cryptocurrency exchange Gemini, pointed out in an open letter to Barry Silbert, CEO of the Digital Currency Group (DCG), which owns Genesis. Winklevoss went on to make a blunt appraisal of DCG’s business practices.
According to the letter Winklevoss posted on Twitter, Genesis owes Gemini $900 million for funds Gemini lent to it as part of the Gemini Earn program. “For the past six weeks, we have done everything we can to engage with you in a good faith and collaborative manner in order to reach a consensual resolution for you to pay back the $900 million that you owe,” Winklevoss wrote, however:
“Every time we ask you for tangible engagement, you hide behind lawyers, investment bankers, and process.”
Winklevoss claimed DCG owed its subsidiary Genesis money that it has not repaid, leading to the failure of Genesis to pay Gemini.
Gemini was sued by investors on Dec. 27. The suit alleged that Gemini engaged in fraud and violations of the securities laws because the Earn program was not registered and the investors were unable to assess its risks fully. Earn stopped paying investors in November.
DCG did not borrow $1.675 billion from Genesis
DCG has never missed an interest payment to Genesis and is current on all loans outstanding; next loan maturity is May 2023
DCG delivered to Genesis and your advisors a proposal on December 29th and has not received any response
— Barry Silbert (@BarrySilbert) January 2, 2023
Silbert countered Winklevoss, claiming Genesis has responded to Gemini’s proposal and DCG is not overdue with payments to Genesis.