DCG will independently deal with disputed assets worth 900 million
2023.01.02 15:53
DCG will independently deal with disputed assets worth 900 million
Budrigannews.com – On Monday, Cameron Winklevoss, who co-founded the cryptocurrency exchange Gemini Trust Co. with his twin brother, asked Digital Currency Group (DCG) CEO Barry Silbert to promise to resolve $900 million in disputed customer assets by January 8.
In collaboration with Genesis, a crypto company owned by DCG, Gemini offers a crypto lending product known as Earn. After the collapse of the major cryptocurrency exchange FTX in November, Genesis stopped letting customers withdraw money.
Winklevoss claimed that Genesis owed approximately 340,000 Earn investors more than $900 million and that he had been working with Silbert for six weeks to come to a “consensual resolution.”
In an open letter to Silbert that was shared on Twitter, Winklevoss wrote, “However, it is now becoming clear that you have been engaging in bad faith stall tactics.”
He went on to say, “We are asking you to publicly commit to working together to solve this problem by January 8th, 2023.” What would happen if no agreement was reached by January 8 was not stated in the letter.
“This mess is entirely of your own making,” Winklevoss wrote, adding that DCG owed Genesis $1.675 billion, which Genesis in turn owed to Earn users and other creditors.
In a tweet, Silbert stated that DCG never borrowed $1.675 billion from Genesis.
Silbert stated that DCG had submitted a proposal to Genesis and Winklevoss’ advisers on December 29 but had not received a response. “DCG has never missed an interest payment to Genesis and is current on all loans outstanding,” he added.
In a letter to clients on December 7, Genesis stated that it would take “weeks rather than days” to develop a strategy and that it was working to safeguard client assets and improve liquidity.
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