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20 Jan 2023

Gemini co-founder threatens to file lawsuit against DCG and Barry Silbert

Cameron Winklevoss, co-founder of crypto exchange Gemini, threatened to file a lawsuit against crypto conglomerate Digital Currency Group (DCG) and its CEO Barry Silbert after DCG's lending unit Genesis filed for bankruptcy protection.

Winklevoss said in a tweet thread late Thursday that unless DCG and Silbert make a "fair offer" to Gemini's Earn customers, legal action will be taken against them "imminently." Gemini is Genesis's biggest creditor, with a claim of $766 million.

"We have been preparing to take direct legal action against Barry, DCG, and others who share responsibility for the fraud that has caused harm to the 340,000+ Earn users and others duped by Genesis and its accomplices," Winklevoss said in the tweets. "Crucially, the decision to put Genesis into bankruptcy does not insulate Barry, DCG, and any other wrongdoers from accountability."

Winklevoss has been involved in a weeks-long public spat with DCG and Silbert over the loan repayment. Winklevoss called for Silbert’s ousting from DCG, alleging Silbert had mixed funds between the numerous companies he manages within DCG and engaged in “bad faith stall tactics” as Gemini attempted to recall the funds.

Genesis said a release that its restructuring process through bankruptcy protection has a "holistic solution," which, if achieved, "would provide an optimal outcome for Genesis clients and Gemini Earn users."

Genesis Global Holdco LLC, the parent company of troubled cryptocurrency lender Genesis Global Capital, filed for Chapter 11 bankruptcy protection late Thursday after taking huge hits from the collapses of crypto hedge fund Three Arrows Capital and crypto exchange FTX.

Genesis Global Holdco and its subsidiaries Genesis Asia Pacific Pte. Ltd and Genesis Global Capital LLC filed a trio of voluntary petitions in the U.S. Bankruptcy Court for the Southern District of New York. 

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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