{"id":16075,"date":"2023-01-03T16:17:55","date_gmt":"2023-01-03T16:17:55","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/geminis-cameron-winklevoss-insists-digital-currency-group-needs-to-resolve-liquidity-issues-in-open-letter-to-ceo-barry-silbert-bitcoin-news\/"},"modified":"2023-01-03T16:17:55","modified_gmt":"2023-01-03T16:17:55","slug":"geminis-cameron-winklevoss-insists-digital-currency-group-needs-to-resolve-liquidity-issues-in-open-letter-to-ceo-barry-silbert-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/geminis-cameron-winklevoss-insists-digital-currency-group-needs-to-resolve-liquidity-issues-in-open-letter-to-ceo-barry-silbert-bitcoin-news\/","title":{"rendered":"Gemini’s Cameron Winklevoss Insists Digital Currency Group Needs to Resolve Liquidity Issues in Open Letter to CEO Barry Silbert \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Cameron Winklevoss, co-founder of the cryptocurrency exchange Gemini, published an open letter to Digital Currency Group (DCG) CEO Barry Silbert on Jan. 2, 2022, stating that it had been 47 days since withdrawals from Genesis had been halted. In the letter, Winklevoss claimed that DCG owes $1.675 billion to Genesis. Silbert, however, responded on social media, denying the claim.<\/strong><\/p>\n

Gemini Co-Founder Publishes Open Letter to DCG Chief Executive Barry Silbert Demanding He Resolves Liquidity Issues by Jan. 8, 2023<\/h2>\n

Gemini co-founder Cameron Winklevoss shared<\/a> an open letter on Twitter on Monday in hopes to get Digital Currency Group (DCG) CEO Barry Silbert\u2019s attention. Winklevoss says in the letter that he wrote it on behalf of 340,000 Gemini Earn users. \u201cThese users are not just numbers on a spreadsheet, they are real people,\u201d Winklevoss declared. Basically, Gemini offered Earn users as much as 8% interest on specific digital assets and it managed to do so because Genesis Global Capital\u2019s lending arm was a key partner.<\/p>\n

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Earn Update: An Open Letter to @BarrySilbert<\/a> pic.twitter.com\/kouAviTho4<\/a><\/p>\n

\u2014 Cameron Winklevoss (@cameron) January 2, 2023<\/a><\/p>\n<\/blockquote>\n

However, the FTX contagion spread to Genesis, a creditor in the FTX bankruptcy proceedings, and the company\u2019s lending unit halted<\/a> withdrawals and loan originations in mid-Nov. 2022. While Genesis was a key partner for Gemini\u2019s Earn product, it too paused withdrawals<\/a> the same week. Then the Financial Times (FT) published a report<\/a> that alleged Genesis owed Gemini Earn users $900 million. Gemini also formed<\/a> a creditors committee to retrieve the funds from Genesis with Houlihan Lokey as a financial advisor.<\/p>\n

Additionally, upset customers are preparing a potential class action lawsuit<\/a> against Gemini that alleges the exchange of defrauding customers with a bad deal. In the open letter, Winklevoss claims that his team tried to solve the issue with Silbert on multiple occasions and on Dec. 25, 2022. The letter says that the issue is a mess \u201centirely of your own making,\u201d as Winklevoss accuses DCG of owing Genesis $1.675 billion.<\/p>\n

\u201cEvery time we ask you for tangible engagement, you hide behind lawyers, investment bankers, and process,\u201d the Gemini co-founder explained in the letter. Winklevoss further insisted that the funds were used to \u201cfuel greedy share buybacks, illiquid venture investments, and kamikaze Grayscale NAV trades.\u201d The Gemini co-founder further added:<\/p>\n

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It\u2019s not lost on us that you\u2019ve been working desperately to try and firewall DCG from the problems that you created at Genesis. You should dispense with this fiction because we all know what you know \u2014 that DCG and Genesis are beyond commingled.<\/p>\n<\/blockquote>\n

After Winklevoss published his tweet, the DCG CEO responded to the claims that were made. \u201cDCG did not borrow $1.675 billion from Genesis,\u201d Silbert tweeted<\/a>. \u201cDCG 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.\u201d<\/p>\n

Winklevoss then asked<\/a> the DCG executive if he would \u201ccommit to solving this by January 8th in a manner that treats the $1.1 billion promissory note as $1.1 billion.\u201d Silbert did not respond to Winklevoss\u2019 final tweet about committing to a resolution by that day. The open letter to Silbert also demands that the issue gets resolved by Jan. 8, 2022.<\/p>\n

The DCG executive\u2019s last tweet on Dec. 19, 2022, shared an article<\/a> about the DCG subsidiary Grayscale Investments possibly providing investors with a tender offer<\/a> if the Bitcoin Trust\u2019s exchange-traded fund (ETF) goals failed. In that specific tweet, someone asked Silbert how he was doing, and the DCG CEO responded<\/a>:<\/p>\n

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Looking forward to getting this year behind us.<\/p>\n<\/blockquote>\n

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\nTags in this story
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Barry Silbert<\/a>, Cameron Winklevoss<\/a>, ceo<\/a>, Cryptocurrency<\/a>, DCG<\/a>, DCG CEO<\/a>, Digital Assets<\/a>, Digital Currency Group<\/a>, Earn users<\/a>, Exchange<\/a>, Gemini<\/a>, genesis<\/a>, Grayscale NAV trades<\/a>, Houlihan Lokey<\/a>, lending<\/a>, liquidity issues<\/a>, Open Letter<\/a>, partnership<\/a>, Twitter<\/a>, Withdrawals<\/a><\/div>\n<\/div>\n

What do you think about the issues between Gemini\u2019s co-founder Cameron Winklevoss and Barry Silbert over liquidity issues between Gemini and Genesis? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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