Bulletpoints:
• Cameron Winklevoss wrote an open letter to Barry Silbert about Gemini’s blocked funds
• Winklevoss claims that DCG owes Gemini $900 million for funds lent to it as part of the Gemini Earn program
• Gemini was recently sued by investors for allegedly engaging in fraud and violating securities laws with the Earn program
In a shocking development, Cameron Winklevoss, co-founder of the cryptocurrency exchange Gemini, penned an open letter to Barry Silbert, CEO of the Digital Currency Group (DCG) on January 2nd. In the open letter, Winklevoss accused DCG of owing Gemini $900 million for funds it lent to it as part of the Gemini Earn program.
The letter began by noting that “it has been 47 days since Genesis halted withdrawals” and that Gemini has 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”. Winklevoss further explained that “every time we ask you for tangible engagement, you hide behind lawyers, investment bankers, and process”.
The issue was further complicated when Gemini was sued by investors last week. The suit alleges that Gemini engaged in fraud and violated securities laws because the Earn program was not registered and investors were unable to assess its risks fully. Earn stopped paying investors in November.
Winklevoss pointed out that DCG does not owe any money to Genesis, nor has it missed any interest payments. Furthermore, DCG had put forward a proposal to Genesis and its advisors, but has yet to receive any response.
The letter concluded with a stark warning from Winklevoss that “Gemini will continue to pursue all legal remedies necessary to protect its rights”, including the $900 million it believes it is owed by DCG.
The saga between Gemini and DCG continues to unfold. Investors are eagerly awaiting to see if a resolution can be found, or if this will result in a lengthy legal battle. With both sides facing financial headwinds, one thing is certain: the outcome of this dispute will have a major impact on the cryptocurrency industry.