Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, has given Digital Currency Group CEO Barry Silbert until January 8. The tension between the two companies is rooted in Genesis’ debts.
Cryptocurrency companies are resting
Gemini has been suspending withdrawals for its Earn program, which offers up to 8% interest, for months. The crisis in the stock market stems from the difficult situation of Genesis, one of the partners of the Earn program. Gemini co-founders, twins Tyler and Cameron Winklevoss, recently faced profiteering from a lawsuit filed by their investors for allegedly earning interest from their Gemini Earn program. Now, mutual dialogues continue between company officials.
In the latest development, Gemini co-founder Cameron Winklevoss delivered an open letter ultimatum to Barry Silbert, CEO of Digital Currency Group (DCG). Addressed the issue of 340,000 Earn users waiting for withdrawals to resume. He said he has entrusted more than $900 million in assets brought together by users. Overall, Winklevoss says Barry Silbert should speak to Gemini management immediately to reach a resolution.
Victimized Gemini Earn investors await Genesis’ debt
Winklevoss states that Digital Currency Group (DCG) owes Genesis $1.675 billion. He said it also belongs to Genesis’ Earn users and other creditors. The letter reads, “The time has come to take responsibility for this and do the right thing.” Also, Winklevoss accused Silbert of trying to protect DCG from problems with Genesis. In the letter, Winklevoss mentioned that Gemini Earn users are tired and in trouble:
Over the past six weeks, we have done everything we can to communicate with you in good faith and in a cooperative manner to reach a consensus-based decision for you to repay the $900 million you owe.
On November 16, 2022, shortly after the collapse of FTX, Genesis made an important decision regarding its debts. The lending division of the cryptocurrency investment bank said it was temporarily halting debt payments and initiating new loans. Following this, it was predicted that Genesis would file for bankruptcy after FTX. However, Genesis denied rumors that it was on the verge of declaring bankruptcy. Now, Gemini founder Cameron Winklevoss is giving Digital Currency Group CEO Barry Silbert until January 8. Silbert soon responded to this letter.
Barry Silbert reciprocates: Payout in May
On the other hand, Silbert’s answer mostly focused on rejecting underpayments and reassuring followers that DCG did not miss any interest payments and was current on all available loans. According to their statement, the next payment will be made in May 2023.
In addition, he pointed out that his company’s efforts on December 29 to provide a concrete solution to Gemini users have gone unnoticed and are still unconfirmed by Genesis’ team.
Winklevoss noted that Silbert’s actions were unforgivable in light of the fact that so many customers trust Genesis. Gemini’s co-founder appealed to Silbert to make a public commitment by January 8. Timeline of the Gemini-Genesis crisis cryptocoin.comWe have included it in this article.