- Cameron Winklevoss asks Barry Silbert to resolve Genesis Problems by Sunday.
- Crypto community is concerned that DCG would liquidate its GBTC assets to pay back creditors.
- Andrew expects Gemini to force GenesisTrading into Chapter 11 bankruptcy soon.
In a recently posted letter via Twitter, Cameron Winklevoss has accused fellow businessman Barry Silbert of “bad faith stall tactics” and the intermingling of funds within his conglomerate. Winklevoss says Silbert’s firm has left $900 million in customer assets needlessly in limbo.
The Winklevoss and Silbert brothers launched the Gemini Trust, which halted redemptions on Earn, a lending program that offered users up to 8% on digital currency holdings. In order to do this, it loaned them to Genesis Global Capital, one of Silbert’s businesses controlled by the Digital Currency Group.
The Earn halt came in November after Genesis suspended both redemptions and new loan originations at its lending unit because of its exposure to FTX. Genesis told clients that it could take weeks to find a path forward and that bankruptcy may be one possibility.
Winklevoss claimed in an open letter that he shared with Silbert many ways to solve the problem. This was in response to pressure from Silbert as well as from annoyed customers who had been locked out of their Gemini accounts and a lawsuit alleging fraud.
Winklevoss warned Silbert, saying that “this mess is entirely of your own making,” referring to the $1.675 billion owed by DCG to Genesis that was used by Silbert’s conglomerate for other business purposes. Moreover the Earn owner asserted that “this is money that Genesis owes to Earn users and other creditors.”
Winklevoss further said that:
It’s not lost on us that you’ve been working desperately to try and firewall DCG from the problems that you created at Genesis. You should dispense with this fiction because we all know what you know — that DCG and Genesis are beyond commingled.
According to Winklevoss, Silbert must “publicly commit to working together to solve this problem” by Sunday. This aggressive stance by Winklevoss comes amid a lawsuit accusing Gemini and its founders of fraud for not registering the Earn product as a security.
Additionally, crypto enthusiast Andrew tweeted predicting that “Gemini will force Genesis Trading into Chapter 11 bankruptcy imminently.”
The netizen further prophesied that the bankruptcy of Genesis will result in the sale of DCG assets based on callable debts. A liquidation of DCG’s Grayscale investment ($GBTC et al) is also very much possible.
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