Winklevoss slams DCG’s Silbert — Not even SBF was ‘capable of such delusion’

Founder and CEO of crypto exchange Gemini, Cameron Winklevoss, is again threatening to sue Digital Currency Group (DCG) and its CEO Barry Silbert over delays in resolving the issue of funds owed to Gemini by bankrupt lender Genesis, slamming the CEO for allegedly trying to play the victim card.

In the July 4 “Open Letter to Barry Silbert,” Winklevoss alleged the DCG enterprise had engaged in “fraudulent behavior” via a “culture of lies and deceit” — coming at the expense of Gemini’s 232,000 Earn users.

Among the accusations in Winklevoss’ strongly-worded letter is that Silbert intentionally delayed resolution through “abuse” of the mediation process. The letter states:

“Mediation has given DCG an indefinite forbearance on the $630 million it owes Genesis — for free.“

Most disturbing, according to Winklevoss, has been Silbert’s apparent claim of being the “victim” in the debacle.

“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,” said Winklevoss, adding: 

“Not even Sam Bankman-Fried was capable of such delusion.”

DCG’s Genesis was the lender behind Gemini’s Earn program, which promised returns as high as 8% to depositors. However, on Nov. 16, 2022, Genesis announced it temporarily suspended withdrawals, citing “unprecedented market turmoil.” 

Genesis later filed for bankruptcy on Jan. 19, 2023, with Gemini seeking to recover its share of the billions owed by Genesis to creditors since.

However, after what Winklevoss has described as multiple delays, he appears to have had enough.

“I write to inform you that your games are over,” Winklevoss said, explaining that professional fees have now “ballooned” to over $100 million at the expense of credits and Earn users. “Enough is enough.”

Winklevoss has given Silbert an ultimatum, accept his firm’s “best and final offer” by 4 pm Eastern Time on July 6 — or face a lawsuit on July 7.

The final offer to DCG from Winklevoss. Source: Twitter

The offer pitched calls on DCG to make a $275 million payment by July 21, an additional $355 million before July 21, 2025, and a final payment of $835 million by July 21, 2028 — five years from the “Plan Support Agreement” date proposed by Winklevoss.

The total payment will come to $1.47 billion.

Related: Gemini, Genesis file to dismiss SEC lawsuit against Earn product

Winklevoss wants the payments to be made in the form of Bitcoin (BTC), Ether (ETH) and the United States dollar, with the funds sourced from Genesis Global Trading, potential payouts from FTX and Alameda Research’s bankruptcy estates, in addition to Avalanche (AVAX) and Near (NEAR) tokens that it may have a claim to from the Three Arrows Capital’s bankruptcy estate.

Cointelegraph reached out to DCG for comment but did not receive an immediate response.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom




Source link

You might also like

Comments are closed.