Gemini Accuses Barry Silbert of Foul Play and Demands Payback of $900M

Key takeaways:

  • On Twitter, Cameron Winklevoss posted an open letter to Barry Silbert.
  • The two businesses are, in Winklevoss’ words, “beyond commingled.”

Cameron Winklevoss of Gemini released a scathing open letter to Barry Silbert, CEO of the Digital Currency Group, on January 2nd. Through Genesis’ loan program, which halted withdrawals following FTX‘s demise, the DCG owes Gemini $900 million.

An open letter written to Barry Silber, the CEO of the Digital Currency Group, was recently published by Cameron Winklevoss.

The letter claims that Stillbert is engaging in bad-faith negotiations and notes that 47 days have passed since Genesis stopped withdrawing funds, requiring Winklevoss’ Gemini to follow suit.

Silbert is alleged to have been evasive throughout the whole time frame, refusing to bargain with Gemini and delaying any scheduled meetings.

The letter requests that Genesis Global Trading, a division of DCG, return its obligation since it now controls $900 million in Gemini‘s assets.

The letter claims that more than 340,000 Gemini Earn customers who are “weary, afraid, and in terrible straights” are the rightful owners of the $900 million stranded with Genesis.

Although Winklevoss recognizes that restructuring has “startup costs,” he also labels DCG’s actions as “inappropriate” and “unconscionable.”

The letter also charges Silbert with believing the issue will “magically go away” while quietly attempting to hide in his ivory tower.

Additionally, it asserts that Silbert is solely to blame for Gemini’s problems and that the DCG owes Genesis more than $1.6 billion. Winklevoss ends by stating that a resolution must be reached by January 8th.

Winklevoss claims that Silbert has evaded his obligations by hiding “behind attorneys, investment bankers, and others.” The CEO of DCG is reportedly attempting to escape his obligation in this way. Published as Winklevoss:

“The idea in your head that you can quietly hide in your ivory tower and that this will all just magically go away or that this is someone else’s problem is pure fantasy. To be clear, this mess is entirely of your own making.”

Barry Silbert responded to Cameron Winklevoss’ letter shortly after it was published on Twitter. According to Silbert, neither the Digital Currency Group nor its subsidiary ever borrowed the $1.6 billion from Genesis.

Furthermore, according to the CEO of DCG, his business sent a proposal on December 29th but has not heard back.

Since then, it has come to light that Genesis‘ attempts to acquire a $1 billion loan to alleviate its cash flow problems fell through. Despite this, a spokesperson for the business said it is still having “extremely positive talks” with investors.

The business reportedly recruited restructuring advisers in late November and continued to consider bankruptcy.

Deep Dalal
Deep Dalal

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