Winklevoss Threatens Genesis And DCG—Massive Fallout Coming Soon?
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January 2, 2023 1:48 pm
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Cameron Winklevoss, the co-founder of Gemini, recently gave Genesis and the Digital Currency Group a deadline to respond to the request for the return of nearly $1 billion in customer assets.
Gemini, which engaged in a lending scheme with Genesis, and provided customers with a 7.4% return on their assets for putting up the money, was rocked by the recent collapse of FTX.
The Winklevoss twins reportedly lost $175 million due to having exposure to other FTX-related businesses and Genesis suspended customer withdrawals on November 16th, 2022 due to its own exposure to the exchange.
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FTX’s collapse, and the resulting fallout, have resulted in a lawsuit filed by customers of Gemini, against the exchange, seeking a return of their missing funds that are allegedly in Genesis’ control.
Cameron Winklevoss sent this letter to Barry Silbert of the Digital Currency Group, criticizing the firm, and outlining a deadline to respond to the issue of returning customer funds:
JUST IN: Cameron Winklevoss, co-founder of Gemini exchange, sent an open letter to Digital Currency Group CEO Barry Silbert saying Genesis used "malicious" distraction tactics, and owes them over $900M, giving Barry Silbert a deadline of Jan 8th. pic.twitter.com/QrO5ZHCXw6
— CryptoVinco (@CryptoVinco) January 2, 2023
2/ The Winklevoss twins lost more than $175M in accounts at FTX. This is in addition to losing more than $900M of customer funds deposited at another firm impacted by the FTX collapse. https://t.co/F89qMXCbbz
— @amuse (@amuse) January 2, 2023
Markets Insider provided more context on the lawsuit against the Winklevoss twins:
The company and the Winklevoss twins are accused of fraud and violation of the Exchange Act, according to a complaint filed in the US Southern District of New York on Tuesday.
Investors Brendan Picha and Max J. Hastings, who are listed as two of the plaintiffs in the filing, say Gemini failed to register those assets as securities in accordance with US securities law.
Barry Silbert, the guy who shorted #Dogecoin during SNL. Forbes recorded his net worth = $0 last month. Today, Gemini Co-Founder Cameron Winklevoss asked him to pay back more than $900 million he owes. Fate loves Irony. Karma hits back! pic.twitter.com/r3dZv0TBn4
— DogeDesigner (@cb_doge) January 2, 2023
AMB Crypto had more on the letter:
In an open letter to Barry Silbert – CEO of DCG, Winklevoss revealed that the platform has been “engaging in bad faith stall tactics”, instead of meeting with the team to come up with a concrete resolution. The co-founder stated that despite delivering a proposal on December 17 and an updated proposal on December 25, Genesis refused to “hash out a resolution”. The crypto lending firm has even refused to work on a timeline.
“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.”
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