DCG’s crypto firm Genesis is in conflict with Gemini over its passive income generating Earn program. The parties recently made harsh statements in response. Now concerns are that DCG and Genesis, like FTX and Alameda, will hit the crypto market.
Are DCG and Genesis nearing an FTX-like end?
Gemini co-founder Cameron Winklevoss accused Digital Currency Group (DCG) CEO Barry Silbert of “dishonest delaying tactics” on Monday. He also demanded to pay his pipers back by January 8th.
In collaboration with DCG’s crypto company Genesis, Gemini is launching a crypto lending product called Earn. After the massive cryptocurrency exchange FTX crashed in November, Genesis suspended customers’ withdrawals. Currently, users of both the Gemini Earn program and Genesis are waiting to get their funds back.
Earn Update: An Open Letter to @BarrySilbert pic.twitter.com/kouAviTho4
— Cameron Winklevoss (@cameron) January 2, 2023
Now, Gemini co-founder Cameron Winklevoss and DCG CEO Barry Silbert are in the middle of a dispute, which they have publicly posted on Twitter. Winklevoss alleges that Genesis and DCG owes Gemini and its customers $900 million, and has given Silbert until January 8 to commit themselves openly and openly to resolving the matter.
Earn Update: An Open Letter to @BarrySilbert pic.twitter.com/kouAviTho4
— Cameron Winklevoss (@cameron) January 2, 2023
In response to Winklevoss’ allegations, DCG CEO Barry Silbert stated that the company did not borrow $1.675 billion from Genesis. He tweeted, “DCG hasn’t missed any interest payments to Genesis and is doing well on all loans; The next loan maturity is in May 2023. DCG submitted a proposal to Genesis and your advisors on December 29 and has yet to receive a response.”
DCG did not borrow $1.675 billion from Genesis
DCG has never missed an interest payment to Genesis and is current on all loans outstanding; next loan maturity is May 2023
DCG delivered to Genesis and your advisors a proposal on December 29th and has not received any response
— Barry Silbert (@BarrySilbert) January 2, 2023
Winklevoss also told Barry Silbert to stop acting like he and DCG were innocent bystanders who had nothing to do with this mess. In their statement, “They are completely lying. So if DCG didn’t borrow the money, how did it owe Genesis $1.675 billion?” made statements.
DCG and Genesis: The next crypto war?
According to sources, Genesis said in a December 7 letter to clients that it continues to work to protect client funds and solidify liquidity, but that it will take “weeks instead of days” to formulate a strategy. It’s worth noting that multiple simultaneous class action lawsuits were filed against Gemini in early December by investors Brendan Picha and Max J. Hastings. cryptocoin.com We have included the details in this article. In short, the story so far looks like this:
- DCG owes 1.6 billion to 340,000 users.
- Barry refuses to meet up and find a solution.
- DCG used user funds to speculate on risky transactions.
- DCG is working to resolve this issue by January 8th.
