Aaryamann Shrivastava
FXStreet
- Gemini co-founder Cameron Winklevoss claims that DCG and Genesis organized a carefully crafted campaign of lies.
- Last week, Winklevoss had given Silbert the deadline of January 8 to recover Gemini Earn users' funds.
- Winklevoss called for the removal of Barry Silbert, stating there is no path forward as long as he remains the DCG CEO.
Gemini Earn users took collateral damage after Genesis Global Capital halted its withdrawals in November 2022. Since then, Gemini founder Cameron Winklevoss has been attempting to recover the assets stuck with Genesis by coalescing with Barry Silbert, CEO of Digital Currency Group (DCG), Genesis' parent company.
Gemini founder takes on Silbert
Gemini had over 340,000 users invest in its Earn program that it was operating in partnership with Genesis Global Capital. However, following the collapse of cryptocurrency exchange FTX, Genesis halted withdrawals, effectively leaving Gemini Earn users' funds, worth approximately $900 million, stuck in the platform.
Winklevoss attempted to work out the problem with Barry Silbert, but following the failure to make it happen, Gemini CEO has gone all out in his open letter on January 10. As per Winklevoss, Silbert, along with Genesis, has defrauded the Gemini Earn users by issuing misleading statements.
Citing a tweet from July 6 where Silbert stated that DCG had the capital to operate following cryptocurrency hedge fund Three Arrows Capital's (3AC) bankruptcy was untrue and that the company hadn't given any funding to Genesis to make up for 3AC losses.
Earn Update: An Open Letter to the Board of @DCGco pic.twitter.com/eakuFjDZR2
— Cameron Winklevoss (@cameron) January 10, 2023
The open letter further claimed that Genesis had perpetrated a carefully crafted campaign of lies wherein they conducted accounting fraud as well. According to Winklevoss,
"This [accounting fraud] made the Genesis balance sheet appear healthier than it actually was, fraudulently inducing lenders to continue making loans."
Winklevoss wants DCG CEO out
Towards the end of the letter, Gemini's founder asked for the removal of the crypto venture capital company's head, calling Barry Silbert unfit to run DCG.
Winklevoss added that Silbert was not only unwilling but also unable to find a resolution with creditors. He stated that there was no path forward for as long as Silbert remained the CEO.
Winklevoss stated that new management would be far more capable of recovering Gemini Earn users' funds as they would be willing to work together. Barry Silbert has not made any comment in response to the letter at the time of writing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.