Jan. 2 “marks 47 days since Genesis stopped withdrawing,” pointed out Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, in an open letter to Barry Silbert, CEO of Digital Currency Group — which Genesis owns. Winklevoss went on to offer a candid assessment of DCG’s business practices.
According to Winklevoss’ letter posted on Twitter, Genesis owes Gemini $900 million for funds Gemini loaned to him under the Gemini Earn program. “Over the past six weeks, we have done everything within our power to work in good faith and in a cooperative manner with you to reach an amicable resolution for the repayment of the $900 million that you owe,” Winklevoss wrote and added:
“Every time we ask you for specific engagement, you hide behind lawyers, investment bankers and lawsuits.”
Winklevoss claimed that DCG owed Genesis money that it failed to repay, resulting in Genesis failing to pay Gemini.
Gemini was sued by investors on December 27th. The lawsuit alleges that Gemini was involved in fraud and violations of securities laws because the Earn program was unregistered and investors failed to fully assess its risks. 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 outstanding loans; next loan maturity is May 2023
DCG submitted a proposal to Genesis and their advisors on December 29 and received no response
— Barry Silbert (@BarrySilbert) January 2, 2023
Silbert countered Winklevoss, claiming that Genesis acted on Gemini’s proposal and that DCG was not overdue in its payments to Genesis.
“There you are again,” replied Winklevoss Silbert. He further asked if Silbert would “commit to resolving this” by Jan. 8.
And now you’re starting again. Stop pretending that you and DCG are innocent bystanders and have nothing to do with causing this mess. It’s completely dishonest.
So how does DCG owe Genesis $1.675 billion if it didn’t lend the money? Oh yeah, that promissory note…
— Cameron Winklevoss (@cameron) January 2, 2023