Cameron Winklevoss Representing 340,000 Users Criticizes DCG Founder Barry Silbert

Key Points:

• Gemini co-founder Cameron Winklevoss sent an open letter to DCG founder Barry Silbert.
• In the letter, Winklevoss argues that he has been employing dishonest delay tactics and not cooperating with the process.
• Winklevoss asked Silbert to give a solution to repay the more than $900 million owed, hoping that he could solve the problem before January 8.

A letter addressed to Barry Silbert, the founder, and CEO of the Digital Currency Group (DCG), was published by Cameron Winklevoss, a co-founder of the cryptocurrency exchange Gemini. Winklevoss, the parent business of Grayscale and cryptocurrency lender Genesis, criticized his partner for the predicament that is causing thousands of consumers to experience financial hardship.

In the letter, Winklevoss puts a face on the 340,000 Earn users, the “real people” that lent their funds to Genesis. These people, applying Winklevoss’ reasoning, put their money in the hands of Barry Silbert and the Digital Currency Group. Reads the letter:

“These users aren’t just numbers on a spreadsheet. They are real people. A single mom who lent her son’s education money to you. A father who lent his son’s bar mitzvah money to you. A husband and wife who lent their life savings to you… They deserve concrete answers and we are here to get them.”

Genesis owes Gemini $900 million for money that the exchange lent to it as part of the Earn program, per the letter Winklevoss released on Twitter.

Winklevoss asserted that Genesis was unable to pay Gemini because DCG owed it money that it had not repaid.

On December 27, investors sued Gemini. Because the Earn program was unregistered and investors were unable to adequately assess its risks, the lawsuit claims that Gemini committed fraud and broke securities laws. In November, Earn ceased paying investors.

Silbert responded to Wilkevoss’ letter by denying many claims in a tweet without going into further detail, such as “DCG did not borrow $1.675 billion from Genesis” and “never missed an interest payment to Genesis and is current on all loans outstanding.”

In addition, Silbert claimed DCG sent a plan for settling the conflict to Genesis and Winklevoss’ advisors on December 29 but had not heard back.

According to Coincu’s previous article, Gemini Earn’s product ceased operations as a result of Genesis’ liquidity problems. FTX had an effect on the business, and it has been looking to raise money to start up again. Customers’ money is currently locked in Gemini Earn and Genesis.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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