Cameron Winklevoss, the co-founder and president of cryptocurrency exchange Gemini, has given Barry Silbert, the founder and CEO of embattled crypto empire Digital Currency Group (the parent company of bankrupt crypto lender Genesis), a 3-day ultimatum in another open letter.
The Gemini president threatened to sue Silbert and DCG should they fail to agree to the newly-presented offer by 4 pm ET on July 6, 2023.
Winklevoss Slams DCG’s Silbert
In the open letter dated July 3, Winklevoss criticized Silbert for playing the victim card when DCG’s fraudulent behavior led to over $1.2 billion of Gemini Earn customer assets being trapped in Genesis. He said Silbert fostered a culture of lies and deceit, now documented in the public record, and has not addressed the misleading statements given to creditors.
“You offer no apology to creditors and Earn users for holding their money hostage during the holiday season. No apology for the stress, anxiety, and pain you have caused them and their families. And no apology for the burned bridges and value destruction you have caused our entire industry. No contrition or acknowledgment whatsoever” said Winklevoss.
The Gemini president insisted that even Sam Bankman-Fried (SBF), the founder and former CEO of bankrupt crypto exchange FTX, was not capable of such delusion. He stated that SBF had at least tried to make things right after acknowledging his actions had hurt others.
Among the various allegations in Winklevoss’ letter, Silbert was accused of abusing the mediation process and intentionally causing delays to buy time. Winklevoss argued that since the day Genesis halted its withdrawal services, Silbert never had any intention of finding a consensual resolution with creditors and Gemini Earn users.
To that effect, Winklevoss proposed a “best and final offer,” which he tagged fair and reasonable for everyone, representing a floor that creditors will accept.
A 3-Day Ultimatum
According to Winklevoss, failure to accept the proposal would attract several legal consequences. On July 7, the Gemini executive and his exchange would sue Silbert and DCG, outlining the CEO’s liability in hiding Genesis’ insolvency.
Furthermore, Winklevoss will file a turnover motion, demanding immediate payment of the $630 million owed to Gemini Earn users and creditors. They will also work with the Genesis Special Committee to implement a non-consensual plan that provides immediate distributions to creditors and Earn users.
In addition, the Gemini president will demand that the Unsecured Creditor Committee (UCC) take legal steps as part of an investigation into intercompany loans and transactions between DCG and Genesis entities.
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