In the words of Cameron Winklevoss, “For the past six weeks, we have done everything we can to engage with you in a good faith and collaborative manner in order to reach a consensual resolution for you to pay back the $900 million that you owe.”
Cameron Winklevoss, the Co-Founder of Gemini, questioned Digital Currency Group's Barry Silbert about the delay in repaying Gemini’s funds.
The news came a few days after two plaintiffs filed a class action lawsuit against Gemini for halting its yield-bearing program, Gemini Earn.
In the open letter addressed to Silbert, Winklevoss claimed that Genesis and DCG owe $900M to Gemini users. He claimed that Silbert had evaded Gemini’s attempts to arrive at a consensual resolution for over six weeks. Winklevoss accused Silbert of using stall tactics to delay paying back the $900M, adding,
“Every time we ask you for tangible engagement, you hide behind lawyers, investment bankers and process. After six weeks, your behavior is not only completely unacceptable, it is unconscionable.”
The Co-Founder of Gemini also alleged that Silbert used $1.675B to fund illiquid venture investments at the expense of Genesis’ creditors. He concluded the letter by asking Silbert to work together for a solution by January 8, 2023.
In response, Barry Silbert claimed that DCG had sent a proposal to Genesis and Gemini’s advisors on December 29, noting that the firm never received any response from Gemini.
Earlier in November, Genesis halted loan redemptions due to the market turmoil created by FTX’s collapse. Soon, Gemini suspended asset deposits on its Earn product as Genesis acted as the exchange’s primary lending partner in this program.
