Cameron Winklevoss, the founder and CEO of cryptocurrency exchange Gemini, has issued a threat to sue Digital Currency Group (DCG) and its CEO Barry Silbert over delays in resolving the issue of funds owed to Gemini by bankrupt lender Genesis. In an “Open Letter to Barry Silbert” published on July 4, Winklevoss accused DCG of engaging in fraudulent behavior at the expense of Gemini’s 232,000 Earn users.
Winklevoss alleged that Silbert intentionally delayed the resolution by abusing the mediation process, giving DCG an indefinite forbearance on the $630 million owed to Genesis without cost. He criticized Silbert for portraying himself as a victim despite owing billions of dollars to hundreds of thousands of people.
DCG’s Genesis was the lender behind Gemini’s Earn program, which promised high returns to depositors. However, Genesis temporarily suspended withdrawals in November 2022 due to market turmoil and filed for bankruptcy in January 2023. Gemini has been seeking to recover its share of the funds owed by Genesis to creditors.
Winklevoss expressed frustration with multiple delays and stated that professional fees have exceeded $100 million, impacting credits and Earn users. He presented Silbert with an ultimatum, demanding acceptance of Gemini’s “best and final offer” by July 6 or face a lawsuit on July 7.
Gemini’s offer includes a payment of $275 million by July 21, an additional $355 million before July 21, 2025, and a final payment of $835 million by July 21, 2028, with a total of $1.47 billion. Winklevoss proposed that the payments be made in Bitcoin, Ether, and the US dollar, sourced from various entities such as Genesis Global Trading, FTX, Alameda Research’s bankruptcy estates, and tokens from Three Arrows Capital’s bankruptcy estate, including Avalanche and Near.
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