Wu Blockchain reported on December 2nd that Cameron Winklevoss, the founder of Gemini, has written an open letter to Barry Silbert, the founder of Digital Currency Group (DCG).
The letter expressed concern about the 340,000 EARN users who have been unable to withdraw their funds, totaling $900 million, for 47 days. Winklevoss has asked Silbert to commit publicly to addressing this issue.
Winklevoss emphasized in his letter that the 340,000 EARN users affected by the withdrawal issue are not just anonymous entities but real people with real stories. He gave the examples of a single mother who had lent money for her son’s education and a father who had lent money for his son’s bar mitzvah.
Winklevoss pointed out that these individuals have entrusted a total of more than $900 million of their assets to DCG and therefore deserve concrete answers to their questions and concerns.
According to Gemini’s founder, for the past six weeks, he and his team have been trying to engage with Silbert and DCG in a collaborative manner to find a mutually agreed-upon solution for repaying the funds while also helping Silbert preserve his business.
Winklevoss has accused Silbert of engaging in bad-faith stall tactics. On December 2nd, the Gemini founder suggested that the most productive way to reach a resolution would be to bring everyone together in the same room as soon as possible.
Silbert had agreed, but only on the condition that there be a proposal on the table first. Winklevoss stated that a proposal was delivered to Silbert on December 17th and an updated version on December 25th. However, Silbert has continued to refuse to meet with them in person to work toward a resolution.
Gemini Founder Gives Deadline
Gemini Founder clarified that the current issue is entirely the responsibility of Silbert and DCG. According to him, DCG owes a total of $1.675 billion to Genesis. This debt consists of money that Genesis owes to EARN users and other creditors.
Winklevoss accused Silbert of using funds entrusted to him by schoolteachers and others for his own benefit through greedy share buybacks, risky investments, and speculative trades that increased the fee-generating AUM of his trust.
Winklevoss has asked Silbert to publicly commit to finding a solution to the current problem by January 8th. He also emphasized that they are willing to work with Silbert, but that time is running out.
Gemini Founder Vs. DCG Founder
Barry Silbert responded to these accusations on Twitter, stating that DCG did not borrow $1.675 billion from Genesis, has never missed an interest payment to Genesis, and is current on all loans.
He also claimed that DCG delivered a proposal to Genesis and their advisors on December 29th and has not received any response.
In response to Silbert’s statement, Winklevoss accused him of trying to portray himself and DCG as innocent parties with no responsibility for the current situation.
Winklevoss pointed out that if DCG did not borrow the money, then how does it owe Genesis $1.675 billion? He suggested that the answer lies in the existence of a promissory note.
Furthermore, Winklevoss has asked Silbert to publicly commit to finding a solution to the current problem by January 8th, 2023, and to treat the $1.1 billion promissory note as an obligation to pay $1.1 billion. But Silbert did not yet respond.
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