Gemini’s Winklevoss calls out DCG over “bad faith stall tactics”

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Gemini’s Winklevoss calls out DCG over “bad faith stall tactics”

By Hassan Maishera - min read
  • Cameron Winklevoss has slammed DCG CEO Silbert for ‘Bad Faith Stall Tactics.’

  • DCG-owned Genesis currently owes users of crypto exchange Gemini’s Earn product some $900 million.

  • DCG CEO Silbert has denied the accusations. 

Winkelvoss slams Silbert over bad-faith stall tactics 

Cameron Winklevoss, the co-founder of the Gemini crypto exchange, penned an open letter over funds reportedly owed to Gemini Earn customers.

The letter comes after brokerage platform Genesis halted customer withdrawals in November amid the downfall of FTX. Genesis is owned by Digital Currency Group (DCG).

Following the halting of withdrawals, Genesis owes users of crypto exchange Gemini’s Earn product some $900 million. 

Cameron Winklevoss has now called out DCG’s CEO Barry Silbert over what he regards as “bad faith stall tactics.”

Winklevoss stated that DCG and Silbert are deploying evasive tactics in the ongoing saga. The Gemini co-founder wrote that the cryptocurrency exchange has repeatedly tried to find a consensual resolution to the dispute with Genesis and DCG over returning funds to its users. However, Winklevoss claims that Silbert and his companies are not handling the matter with urgency. He wrote that;

“We appreciate that there are startup costs to any restructuring, and at times things don’t go as fast as we would all like. However, it is now becoming clear that you have been engaging in bad faith stall tactics.”

Winklevoss added that Silbert has so far declined to enter into a room with Gemini executives to resolve things. Silbert has also refused to agree to a timeline with key milestones, Winklevoss added. He stated that;

“After six weeks, your behavior is not only completely unacceptable, it is unconscionable. The idea in your head that you can quietly hide in your ivory tower and that this will all just magically go away, or that this is someone else’s problem, is pure fantasy.”

DCG owes Genesis over $1.6 billion

Cameron Winklevoss revealed that DCG owes Genesis $1.675 billion, citing various figures that Silbert shared with investors two months ago. 

There is a $575 million loan due in May 2023 and another $1.1 billion promissory note due in June 2032. 

While responding to this latest cryptocurrency news, Barry Silbert refuted the claims that DCG owes Genesis over $1.6 billion. He added that DCG recently sent a proposal to Genesis and Gemini regarding the issue. Silbert said;

“DCG did not borrow $1.675 billion from Genesis. DCG has never missed an interest payment to Genesis and is current on all loans outstanding; next loan maturity is May 2023. DCG delivered to Genesis and your advisors a proposal on December 29th and has not received any response.”

Winklevoss proceeded to urge Silbert to publicly commit to solving the crisis on or before January 8. However, Silbert is yet to reply to this request.