Recently on Twitter, Gemini co-founder Cameron Winklevoss sent an open letter addressed to Barry Silbert, CEO, and founder of Digital Currency Group (DCG). Winklevoss charged Silbert with using “bad faith delaying tactics” about Genesis, a DCG subsidiary, owing consumers of Gemini Earn $900 million.
According to Winklevoss, Silbert’s DCG borrowed $1.675 billion from Genesis, or effectively the deposits made by Gemini Earn customers. Additionally, Gemini’s supervisor claimed that DCG and Genesis are “beyond commingled” and that Silbert is “everyone’s boss.” Silbert was given a deadline of January 8 by Winklevoss, who demanded that he publicly commit to finding a solution.
Earn Update: An Open Letter to @BarrySilbert pic.twitter.com/kouAviTho4
— Cameron Winklevoss (@cameron) January 2, 2023
Silbert answered by refuting every charge.
Robert Silbert Denies The Complaints of Cameron Winklevoss
Winklevoss’ letter received a response from Silbert. To defend himself and his businesses, he insisted that they were unrelated and that DCG did not borrow any money from Genesis. Silbert said that DCG had been in touch with Gemini but had yet to hear back.
https://twitter.com/BarrySilbert/status/1609926715454771200
Cameron Winklevoss responds to Barry’s comment
With Silbert’s reaction to his letter, Winklevoss was not pleased. The co-founder of Gemini reiterated the accusations leveled against Silbert and referred to him as “disingenuous.”
There you go again. Stop trying to pretend that you and DCG are innocent bystanders and had nothing to do with creating this mess. It's completely disingenuous.
So how does DCG owe Genesis $1.675 billion if it didn't borrow the money? Oh right, that promissory note…
— Cameron Winklevoss (@cameron) January 2, 2023
Winklevoss once more asked Silbert whether he could commit to resolving the issue by January 8.
“Will you agree to resolve this by January 8 in a way that treats the $1.1 billion promissory note as $1.1 billion, or won’t you?” he demanded.
Where did these Two crossroads?
Things got heated up between these two when the CEO of the Digital Currency Group (DCG), Barry Silbert, was harshly criticized in a public message on Twitter by Cameron Winklevoss, for “stalling” the process of returning more than $900 million to Gemini Earn members.
Winklevoss, whose Gemini has earlier been criticized by Hoskinson, said that Gemini made several attempts over the previous six weeks to get in touch with Silbert and address the liquidity problems. He did, though, claim that it’s obvious Silbert has been “engaged in bad faith delay tactics.”
According to Winklevoss, the payments from Gemini Earn customers were taken and used to “feed greedy share buybacks, illiquid startup investments, and kamikaze Grayscale NAV transactions that increased the fee-generating AUM of your Trust.” Winklevoss claims that Silbert borrowed $1.675 billion from Genesis, a fully-owned subsidiary of DCG.
Gemini Earn users, according to Winklevoss, are “weary,” “scared,” and in “dire straits.” Silbert was asked to “publicly pledge and rectify this problem by January 8, 2023,” according to his request. In response to FTX’s insolvency, Genesis Global Capital froze redemptions and new loan originations on November 17, and Gemini Earn followed suit.
