BTC PULSE
No Result
View All Result
Play Now
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Blockchain

Gemini Founder Accusing Genesis Parent Company of Accounting Fraud?

by Darius Ngetich
Jan 7, 2023 - 12:00 am
in Blockchain
Gemini Founder Accusing Genesis Parent Company of Accounting Fraud?

The CEO of Digital Currency Group, Barry Silbert, has been accused of “bad faith stall tactics” by the co-founder of cryptocurrency exchange Gemini as their respective businesses are at odds over a commercial dispute brought on by FTX’s multibillion-dollar collapse late last year. Silbert said his business delivered a proposal to Genesis and Gemini’s advisors last Thursday

In an open letter published on Twitter, Cameron Winklevoss attacked Silbert and claimed that the cryptocurrency broker Genesis Global Capital and its parent company, DCG, owe the customers of Gemini $900 million. According to the letter, Gemini allegedly waited six weeks without hearing anything about a repayment deal. 

Earn Update: An Open Letter to @BarrySilbert pic.twitter.com/kouAviTho4

— Cameron Winklevoss (@cameron) January 2, 2023

Silbert responds

Silbert tweeted that DCG still needed to receive a response since delivering a proposal to Genesis and Gemini’s advisors on December 29, 2022. Additionally, Winklevoss alleged that DCG “owes” Genesis $1.675 billion, which he accused DCG CEO Barry Silbert of exploiting for purposes that benefited other DCG companies rather than paying creditors.

DCG “did not borrow $1.675 billion from Genesis,” Silbert tweeted in response. He said that DCG is current on all existing loans and has always remembered to pay interest to Genesis.

https://twitter.com/BarrySilbert/status/1609926715454771200

DCG does have a promissory note for $1.1 billion from Genesis linked to obligations connected to the failure of Three Arrows Capital. In November, Silbert stated in a letter to shareholders that DCG also owed $575 million to Genesis Global and that this obligation was due in May

Winklevoss and his twin brother Tyler are co-owners of Gemini Trust Co., which halted redemptions on an interest-earning product called Earn in the middle of November, a week after competitor cryptocurrency exchange FTX declared bankruptcy. By lending their digital tokens to Genesis, users of the program had the chance to earn up to 8% interest on their investment.

A looming collapse?

Gemini’s redemption pause followed Genesis’ disclosure that its derivatives company had about $175 million parked on the platform of the now-insolvent FTX. When FTX declared bankruptcy and SBF was later arrested, Genesis froze withdrawals and stopped creating new loans. Since then, Genesis’s creditors have collaborated with restructuring attorneys to avoid going bankrupt. However, according to many crypto community members, Gemini could see a collapse due to the precision of Cameron’s letter.

1/ Curtains are closing on the once iconic DCG, at least as we know it today.

There’s subtlety in @cameron’s letter and new risks.

– FTX clawback
– Misrepresentations
– State AG investigations
– Jan 8th deadline

Let’s dig in. 🧵

— Ram Ahluwalia CFA, Lumida (@ramahluwalia) January 6, 2023

In addition to a lawsuit against the company’s Earn product alleging fraud and breaches of securities law and a multitude of irate Earn users who have been unable to access their accounts, Winklevoss’ letter comes while his company is facing significant financial challenges.

Tags: GeminiGenesis
Darius Ngetich

Darius Ngetich

Darius Ngetich is a blockchain, crypto, and gaming enthusiast. He is also an animator, VFX Artist, and Game Developer, specializing in computers with vast experience in programs like Blender, Unity, and Unreal Engine. My passions are creating games and informing others about the latest developments in crypto, blockchain, and gaming.

Related Posts

Exterior view of the Czech National Bank building in Prague, symbolizing the institution’s financial strategies and innovation.

Bank of England Governor Says Stablecoins Could Reduce Reliance on Banks

October 1, 2025

Andrew Bailey says stablecoins could reduce UK reliance on commercial banks by separating money from credit, signaling a...

blockchain

Spacecoin Executes First Blockchain Transaction Through Space

October 1, 2025

Spacecoin has achieved the first-ever blockchain transaction through space using a nanosatellite, marking a milestone for decentralization and...

The headquarters of the Autorité des Marchés Financiers (AMF) Investor in Paris, France, the regulatory body warning investors against ByBit.

French Officials Pressured Telegram to Censor Moldova Election Posts: Durov

September 28, 2025

Pavel Durov revealed French intelligence pressured Telegram to censor Moldova election content in 2024, which he refused, citing...

Wall Street financial district with Bitcoin symbol representing institutional adoption

Bitcoin skepticism fades as nations gear up for adoption, says Samson Mow

September 28, 2025

Samson Mow predicts nation-states will move from skepticism to rapid Bitcoin adoption, fueling global FOMO and a rush...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • About Us
  • Advertise
  • BTC-PULSE
  • Contact Us
  • Events
  • Privacy Policy
  • Sitemap
  • Terms of Service