Winklevoss Attacks DCG’s Silbert – Not Even SBF Was ‘Capable of Such Delusion’
Cameron Winklevoss is the founder and CEO of crypto exchange Gemini. He has threatened to sue Digital Currency Group and its CEO Barry Silbert over the delay in resolving a dispute over funds Gemini is owed by bankrupt lender Genesis. The CEO was criticized for trying to play the victim.
Winklevoss claimed in the July 4th “Open Letter to Barry Silbert” that the DCG company engaged in “fraudulent behavior” through “cultural fraud and lies” – at the expense of Gemini Earn’s 232,000 users.
Earn Update: An Open Letter to @BarrySilbert pic.twitter.com/ErsYpcEjQD
— Cameron Winklevoss (@cameron) July 4, 2023
Winklevoss made a number of allegations, including that Silbert a Solution through “abuse” of the mediation process. The letter reads:
The mediator has granted DCG a free, indefinite moratorium on the $630 million the company owes to Genesis.
Winklevoss finds Silbert’s claim to be the “victim” of the scandal most disturbing.
Winklevoss said, “It’s a special person who owes hundreds of thousands of people $3.3 billion and believes or pretends to be some kind of victim.”
“Not even Sam Bankman Fried was one Capable of deception.”
Genesis, a DCG subsidiary, was the lender for Gemini’s earn program. This program promised depositors returns of up to 8%. Genesis temporarily suspended withdrawals on November 16, 2022, citing “unprecedented turmoil in the market.”
Genesis filed for bankruptcy on January 19, 2023, and Gemini is now trying to recover the billions of dollars Genesis owes its creditors since then.
However, Winklevoss has had enough after several delays.
Winklevoss wrote, “I’m writing to say your game is up.” He explained that professional provider fees have been “bombed” to over $100 million, at the expense of earn- and credit users went. “Enough is enough.”
Winklevoss gave Silbert an ultimatum: Accept his firm’s “best and final offer” by Friday, July 6, 4 p.m. Eastern Time or face a lawsuit on July 7.
The proposal calls for DCG to pay $275 million by July 21, an additional $355 million by July 21, 2025, and $835 million by the end of 2028 – five years later Winklevoss’ Plan Support Agreement.
Total payment is $1.47 billion
Winklevoss requests payments in Bitcoin (BTC ), Ether (ETH) and US Dollars. The funds will come from Genesis Global Trading and possible withdrawals from FTX, Alameda Research and Avalanche (AVAX) or Near (NEAR) tokens, which the company may have a claim to from the Three Arrows Capital bankruptcy estate.
DCG did not immediately respond to AskFX’s request for comment.
