Key Takeaways:
- Gemini’s CEO wrote another open letter, extending the final offer to DCG, before filing a lawsuit against the company.
- What happened between the companies?
- Is the pending lawsuit imminent?
YEREVAN (CoinChapter.com) – The Gemini-DCG saga continues with another open letter from Gemini co-founder Cameron Winklevoss to the parent company Digital Currency Group (DCG) and its CEO Barry Silbert.
Winklevoss extends another open letter to Silbert
The letter once more claims that DCG enterprise engaged in “fraudulent behavior” and that Silbert himself “fostered and architected a culture of lies and deceit.” However, all of the accusations were also included in the previous open letter.
Conversely, the latest one contains “the best and final offer” to provide Gemini Earn clients with nearly $1.5 billion in total by July 7, with the following breakdown: Forbearance payments and Debt tranche 1 and 2. Otherwise, a lawsuit is underway.
Notably, DCG is close to insolvency. The latter missed a payment to Gemini in late May and, according to a Twitter blockchain advocate with an extended following (@ap_Abacus), “is crafting every possible legal delay to avoid the cascading ramifications of July 7, 2023.”
Meanwhile, the letter also requires more context, as Winklevoss vs. Silbert has been going on since 3AC and Genesis’ insolvency. Here is a blitz recap of why Genesis bankruptcy filing is crucial for Gemini Earn users and how DCG features into the picture.
Gemini vs. DCG — What Happened?
Crypto lender Genesis filed for bankruptcy after months of insolvency issues. In detail, the company was hit hard by Terra’s collapse in May, which brought down Three Arrows Capital (3AC), a firm tied to Genesis.
Genesis also borrowed funds from Gemini and, after the 3AC implosion, could not pay them back, impacting Earn clients, who collectively lost millions. Moreover, Gemini and Genesis are sister companies and subsidiaries of crypto giant DCG.
Winklevoss called out DCG and Silbert personally for fraudulent accounting and putting personal gain ahead of client interests. He led Earn clients into a class action arbitration against DCG and Silbert, marking the first round of the Winklevoss vs. Silbert saga.
To be clear, this mess is entirely of your own making. [DCG] owes Genesis (its wholly owned subsidiary) ~$1.675 billion. This is money that Genesis owes to Earn users and other creditors. You took this money […] to fuel greedy share buybacks and kamikaze Grayscale NAV trades.
said Winklevoss in the previous open letter to Silbert.
The “final offer” refers to the pending lawsuit
Meanwhile, the conflict is far from resolved, as Earn users still have to recover their funds. Thus, Winklevoss welcomed the Genesis insolvency news. He stated that the Genesis bankruptcy filing is a “crucial step towards us being able to recover your assets,” meaning Earn users.
The good news is that, by seeking the protection of the bankruptcy court, Genesis will be subject to judicial oversight and be required to provide discovery into the machinations that brought us to this point.
commented Winklevoss in a Twitter thread.
Moreover, Winklevoss mentioned that Gemini Earn users are preparing for legal action against DCG.
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.
he said.
Also read: DCG bankruptcy will hit harder than FTX.
The Gemini executive did not yet file the said lawsuit but said it is “imminent” unless Silbert and DCG “come to their senses.” The latter means Winklevoss expects Silbert to “make a fair offer” to thousands of Earn users, compensating their lost assets. As Silbert did not make the offer, Winklevoss apparently decided to extend the final offer himself. Silbert has not yet responded to the news.
