​Gemini co-founder reminds DCG CEO about the $900 million debt

What’s new? Cameron Winklevoss, the co-founder of crypto exchange Gemini, has published an open letter to Digital Currency Group (DCG) CEO Barry Silbert. He demanded an explanation for the lengthy withholding of client assets in the accounts of the crypto broker Genesis, which he controls. Winklevoss asked Silbert to find a solution to the problem by January 8, 2023.

Earn Update: An Open Letter to @BarrySilbert pic.twitter.com/kouAviTho4 — Cameron Winklevoss (@cameron) January 2, 2023

What else does the letter say? January 2 marked 47 days since Genesis suspended withdrawals, Winklevoss noted. So, the crypto broker owes Gemini $900 million for funds the exchange lent him through the Gemini Earn program.

“For the past six weeks, we have 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” to 340 000 clients Winklevoss said. He added that “every time we ask you for tangible engagement, you hide behind lawyers, investment bankers, and process.”

On December 27, investors sued Gemini. The suit alleges that the exchange committed fraud and violated securities laws because the Earn program was not registered and investors failed to fully assess its risks. Genesis and the Earn program stopped paying investors in November.

Silbert’s response. DCG CEO responded to Winklevoss, saying that DCG sent Genesis and Gemini advisors a proposal on December 29 and received no response. According to Silbert, DCG did not borrow $1,675 billion from Genesis and never missed interest payments to the broker.

DCG did not borrow $1.675 billion from GenesisDCG has never missed an interest payment to Genesis and is current on all loans outstanding; next loan maturity is May 2023DCG delivered to Genesis and your advisors a proposal on December 29th and has not received any response — Barry Silbert (@BarrySilbert) January 2, 2023

For how the Genesis liquidity crisis threatens the crypto market, read GetBlock Magazine’s article.