Where is the $900 Million Going? Cameron Winklevoss asks Barry Silbert to solve Genesis by Sunday. Crypto community fears that DCG may liquidate its GBTC assets to pay creditors. Andrew expects Gemini to force GenesisTrading into Chapter 11 bankruptcy.
In a recent letter posted on Twitter, Cameron Winklevoss accused fellow businessman Barry Silbert of “bad faith tactics” and mixing funds within his company. Winklevoss claims that Silbert’s firm left $900 million in client assets in an unnecessary limbo.
Brothers Winklevoss and Silbert started Gemini Trust, which ended the bailout and Earn, a loan program that gave users up to 8% in digital currency holdings. To do this, he borrowed them from Genesis Global Capital, one of Silbert’s companies controlled by the Digital Currency Group.
Earn’s termination came in November after Genesis suspended both acquisitions and new lending in its mortgage division due to its exposure to FTX. Genesis has told customers that it could take weeks to find a way forward and that bankruptcy could be a possibility.
Winklevoss said in an open letter that he shared with Silbert several ways to solve the problem. This was in response to pressure from Silbert and angry customers who were locked out of their Gemini accounts in a lawsuit alleging fraud.
Winklevoss admonished Silbert, saying “this mess is all you do,” referring to DCG’s $1.675 billion in Genesis that Silbert’s team used for other deals. In addition, the owner of Earn said that “this is the money Genesis owes to the employees and other creditors.”
Winklevoss also said: We do not forget the fact that you are working hard to try and DCG firewall problems that you created in Genesis. You have to skip this myth because we all know what you know – that DCG and Genesis are more than mixed. According to Winklevoss, Silbert must publicly commit to working together to resolve the issue by Sunday.
The aggressive stance from Winklevoss comes amid a lawsuit accusing Gemini and its founders of fraud for failing to register Earn’s stock as a security. Additionally, crypto enthusiast Andrew tweeted predicting that “Gemini will force Genesis Trading into Chapter 11 bankruptcy.”
Netizens went on to predict that the collapse of Genesis would lead to the sale of DCG’s assets due to debt. The cash flow of DCG’s grayscale investment ($GBTC et al) is also quite strong.
Our Social Media Accounts: