Gemini’s Co-founder Defies DCG’s Silbert of “Bad Faith”

Gemini's Co-founder Defies DCG's Silbert of Bad Faith

One of the twin brothers who co-founded Gemini Trust Co, Cameron Winklevoss, denounced DCG’s (Digital Currency Group) CEO, Barry Silbert, for using “Bad Faith stall tactics.” And Winklevoss thereby asked him to carry out resolutions for the $900 million of customers’ locked funds by Jan.8.

Gemini has a partnered Cryptocurrency lending product named “Earn” with DCG’s Cryptocurrency trading company – Genesis.

DCG also acts as a parent firm to Coindesk.

Succeeding the major Crypto exchange – FTX’s – collapse, Genesis discontinued withdrawals for customers in November.

Winklevoss stated that Genesis was indebted to approximately 340,000 investors at Earn for over $900M and that he has been working around meeting a “consensual resolution” with DCG’s CEO for the last six weeks.

Winklevoss Took the Issue to Twitter

In an open letter addressing Silbert on Twitter, Winklevoss wrote, “However, it is now becoming clear that you have been engaging in bad faith stall tactics.”

He further mentioned, “We are asking you to publicly commit to working together to solve this problem by January 8th, 2023.”

The letter did not specify the repercussions if the resolution was not met by 8th Jan.

Winklevoss stated that the Digital Currency Group had an outstanding $1.675 billion to be paid to Genesis, which Genesis would, in turn, pay Earn users and additional creditors.

He also defied Barry Silbert of utilizing $1.675 that DCG “owes” Genesis, for assisting DCG’s other ventures rather than paying creditors back.

“You took this money – the money of schoolteachers – fo fuel greedy share buybacks, illiquid venture investments, and kamikaze Grayscale NAV trades that ballooned the fee-generating AUM of your Trust, all at the expense of creditors and all for your own personal gain.”

He added that “this mess is entirely of your own making.”

DCG Silbert’s Reaction to Winklevoss’s Tweet

Barry Silbert replied to the tweet stating that DCG does not owe $1.675 billion to Genesis and that they never borrowed such an amount.

Silbert said, “DCG has never missed an interest payment to Genesis and is current on all loans outstanding.”

Further adding to it, Silbert said that the DCG conveyed a proposal to both Genesis and Winklevoss’ advisers as of Dec. 29 and has yet to attain a response to it.

Genesis had written a letter to its clients on Dec. 7 that it has been trying to safeguard its clients’ assets and boost liquidity. In addition, Genesis said that it could take “weeks rather than days” to create a plan.

- Published By Team Australia News

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