Gemini’s Winklevoss Threatens DCG With Litigation

Gemini’s Winklevoss Threatens DCG With Litigation

Table of Contents

One of the Winklevoss twins has demanded a payment of $1.47 billion from Digital Currency Group (DCG)’s Barry Silbert. 

Winklevoss Calls Out Silbert

In an interesting turn of events, Cameron Winklevoss, co-founder of Gemini, has made a final offer demanding a payment of $1.47 billion from DCG’s CEO Barry Silbert. He also threatened the latter with legal action if the final payment offer was not met by the deadline of July 6, 4 PM ET. Winklevoss claimed that the legal action would include a detailed report of Silbert’s personal liability in hiding Genesis’s insolvency issues and filing a Turnover Motion to force the immediate payment of the $630 million payment owed to creditors. 

DCG’s Credit Struggles

When Genesis’s parent company DCG got caught up in the credit crisis of 2022, the latter entered into negotiations with creditors. However, the company did miss a $630 million payment to Genesis in May, which has now led to Cameron Winklevoss penning the open letter to Silbert, with the final offer of a $1.47 compensation. This substantial amount reflects the magnitude of the alleged damages and underlines the seriousness of the accusations against DCG and Silbert.

“Game Over”: Winklevoss

Winklevoss posted the open letter on Twitter on Monday, claiming that Silbert had never had any intentions of resolving the matter with the creditors in mind ever since the company had halted its withdrawals. He claimed that instead of working on a proper resolution to return their funds to the Earn users, Silbert and his team have dedicated the last eight months to buy time, to “raise money and stiff creditors and Earn users again.”

He wrote, 

“I write to inform you that your games are over. In addition to dragging out a resolution, they have ballooned professional fees to over $100 million, all of which have gone to lawyers and advisors at the expense of creditors and Earn users. Enough is enough.”

$1.2B Owed To Earn Customers

The demand comes amidst allegations of fraud involving Barry Silbert, founder of DCG, and has sparked widespread speculation within the cryptocurrency community. Gemini had previously lent customer funds to Genesis under the Earn program. Winklevoss claimed that more than 232,000 Earn users have over $1.2 billion of assets trapped in Genesis. Other than this amount, DCG also owes a further $2.1 billion to creditors. 

Winklevoss closed out the letter by writing, 

“I've seen a lot of bad behavior from you and your colleagues over the last 9 months, but perhaps the most disturbing part is something you said to me this Fall that you're a victim in all of this. It takes a special kind of person to owe $3.3 billion dollars to hundreds of thousands of people and believe, or at least pretend to believe, that they are some kind of victim.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

Related Topics: 

You may like