Gemini’s Cameron Winklevoss accuses crypto exec Barry Silbert of ‘bad faith’ stalling over frozen funds

Cameron Winklevoss, co-founder of crypto change Gemini Trust Co., lashed out at Digital Currency Group CEO Barry Silbert on Monday, accusing him of “unhealthy religion stall ways” over almost a billion {dollars}’ value of prospects’ crypto property which were frozen for greater than a month.

In an open letter posted on Twitter, Winklevoss alleged that DCG and its crypto-brokerage unit Genesis Global Capital owes greater than $900 million to customers of Gemini’s Earn program.

Under Gemini Earn, buyers lent Gemini crypto property in change for prime curiosity funds. Gemini then lent the digital property to Genesis. But Genesis halted all withdrawals and transactions in early November as a result of of its publicity to bankrupt crypto platform FTX, inflicting a liquidity disaster for Gemini.

Last week, investors sued Gemini, in addition to Winklevoss and his twin brother, Tyler, accusing them of fraud and of promoting interest-bearing accounts with out registering them as securities.

In his letter Monday, Cameron Winklevoss claimed Silbert has repeatedly refused over the previous six weeks “to get right into a room with us to hash out a decision” to arrange a reimbursement schedule. DCG has previously distanced itself from Genesis and its lending enterprise.

“This mess is totally of your personal making,” Winklevoss stated, alleging that DCG owes Genesis $1.675 billion. “This is cash that Genesis owes to Earn customers and different collectors,” Winklevoss stated, alleging that DCG used these funds for different functions, together with “grasping share buybacks, illiquid enterprise investments and kamikaze Grayscale NAV trades.”

Grayscale Investments can also be a unit of DCG, and its largest funding car is the Grayscale Bitcoin Trust
GBTC,
+3.88%.

In a tweeted response Monday, Silbert denied each that DCG borrowed $1.675 billion from Genesis and that it had missed an curiosity fee to Genesis, and stated it’s present on all loans excellent. He added: “DCG delivered to Genesis and your advisors a proposal on December twenty ninth and has not obtained any response.”

Winklevoss replied that Silbert was being “disingenuous.”

Ram Ahluwalia, CEO of digital-asset funding adviser Lumida Wealth Management, tweeted on Monday that “It’s a a game of chicken now,” and predicted that quickly “DCG might be in a state of ‘indentured servitude’ to its debtholders — together with its subsidiary Genesis.”



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