Winklevoss Threatens Legal Action Against Digital Currency Group and Barry Silbert

Cameron Winklevoss, founder and CEO of the crypto exchange Gemini, is once again threatening to take legal action against Digital Currency Group and its CEO Barry Silbert due to the prolonged resolution of the Genesis issue for its Earn customers, while also accusing Silbert of attempting to portray himself as a victim.

In their July 3 “Open Letter to Barry Silbert,” the Winklevosses accused the DCG enterprise of perpetrating “fraudulent behavior” and fostering a “culture of lies and deceit” that has disadvantaged the 232,000 Earn users associated with Gemini.

In their strongly-worded letter, the Winklevoss’ included accusations that Silbert had deliberately delayed the resolution by “misusing” the mediation process, saying:

Winklevoss has found it most unsettling that Silbert has seemed to portray himself as a “victim” in the situation.

“It takes a certain kind of individual to owe $3.3 billion to hundreds of thousands of people and still think of themselves as a victim, or at least act like one,” commented Winklevoss, further stating:

DCG’s Genesis was the financial institution behind Gemini Exchange’s Earn program, a product that offered potential returns of up to 8% to those who deposited funds. On November 16th, Genesis declared that it had temporarily halted withdrawals due to “unprecedented market turbulence”. Subsequently, on January 19th, Genesis declared bankruptcy.

Genesis subsequently filed for bankruptcy on January 19, with creditors of the company hoping to recoup their share of the billions owed by Genesis.

Despite what Winklevoss has referred to as numerous postponements, it appears he has reached his limit.

“It is with regret that I inform you that your games have come to an end,” Winklevoss stated, noting that professional fees have now “skyrocketed” to more than $100 million at the detriment of credits and Earn users. “This has to stop.”

Ultimatum to Accept Winklevoss’ “Best and Final Offer” by July 6

The Winklevosses have now presented Silbert with an ultimatum: accept their firm’s “best and final offer” by 4 pm ET on July 6, or be faced with a lawsuit on July 7.

DCG has been offered a plan that requires them to make a payment of $275 million by July 21, an additional $355 million by July 21, 2025, and a final payment of $835 million by July 21, 2028, five years from the date of the “Plan Support Agreement” proposed by Winklevoss.

The total amount to be paid will be $1.47 billion.

Gemini and Genesis have filed to dismiss the SEC lawsuit against the Earn product.

The Winklevosses wish for payments to be made in Bitcoin (BTC), Ether (ETH) and the US Dollar (USD); these funds would be sourced from Genesis Global Trading, any potential payouts from FTX and Alameda Research’s bankruptcy estates, as well as Avalanche (AVAX) and Near (NEAR) tokens they may be entitled to from Three Arrows Capital’s bankruptcy estate.

Cointelegraph contacted DCG to obtain a comment, but did not receive an immediate reply.

Magazine: Potential Risks of Unstablecoins, Including Depegging and Bank Runs.

Categorized in:

Crypto

Tagged in: