Cameron Winklevoss, the co-founder of cryptocurrency exchange Gemini, has fired off a fiery open letter to Barry Silbert, the founder of Digital Currency Group (DCG), on behalf of the 232,000 Earn users with over $1.2 billion of assets trapped in the troubled Genesis company.
Winklevoss didn’t hold back, accusing DCG of engaging in fraudulent behavior under Silbert’s leadership and orchestrating a culture of lies and deceit.
The letter highlighted the alleged falsification of balance sheets and documents to perpetuate an accounting fraud, all to hide Genesis’ insolvency.
Despite a history of open letters, Winklevoss asserts that Silbert has consistently avoided responsibility and genuine resolution with creditors and Earn users since the withdrawal gates were closed.
The recent mediation process, which was expected to bring about a solution, has instead granted DCG a gratuitous forbearance on the $630 million owed to Genesis.
This indefinite delay has caused the ballooning of professional fees to over $100 million, borne by creditors and Earn users.
Gemini Winklevoss Outlines Best & Last Chance For Resolution
In an effort to bring this ongoing crisis to a close, Winklevoss issued a final ultimatum to Silbert and DCG. The letter outlined a best and final offer that creditors are prepared to accept, demanding a response by 4 pm ET on July 6th.
If DCG fails to agree, Winklevoss stated that Gemini would take legal action, filing a lawsuit against DCG and Silbert personally on July 7th.
The lawsuit will expose Silbert’s alleged role in hiding Genesis’ insolvency and outline his personal liability. Furthermore, Winklevoss intends to advance a non-consensual plan to provide immediate distributions to creditors and Earn users while litigating DCG’s contribution.
Winklevoss also urged the Genesis Special Committee to fulfill its fiduciary duties by filing a turnover motion, putting DCG into default, and demanding immediate payment of the $630 million owed to creditors and Earn users.
Throughout the letter, Winklevoss expressed deep frustration with Silbert’s perceived lack of self-awareness and refusal to acknowledge the harm caused to Earn users and creditors. He implored Silbert to recognize the gravity of the situation and to finally do the right thing.
However, the cryptocurrency community awaits Silbert’s response and the potential fallout from Winklevoss’ ultimatum. This high-stakes confrontation between Gemini and DCG could have far-reaching implications for the cryptocurrency industry and the millions of dollars at stake.
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