This is BIG: DCG and Genesis the next FTX and Alameda?

Cameron Winklevoss, who co-founded cryptocurrency exchange Gemini Trust Co with his twin brother, alleged Digital Currency Group (DCG) CEO Barry Silbert on Monday of “dishonest delay tactics” and insisted that he devote to settling $900 million in refuted account holders by January 8.

Cameron Winklevoss has written an open letter to Barry Silbert

In collaboration with DCG’s crypto company Genesis, Gemini provides a crypto lending product named Earn. After the collapse of the massive cryptocurrency exchange FTX in November, Genesis stopped client withdrawals.

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

Now, Gemini co-founder Cameron Winklevoss and DCG CEO Barry Silbert have embroiled in a Twitter rift, with the exchange executive slandering Silbert for participating in “bad faith stall tactics” over proposals to reinstate Genesis withdrawals. Winklevoss claims that Genesis and DCG owe $900 million to Gemini and its customers, and has given Silbert till January 8 to clearly and openly dedicate themself to resolving the matter.

DCG did not borrow $1.675 billion from Genesis

DCG has never missed an interest payment to Genesis and is current on all loans outstanding; next loan maturity is May 2023

DCG delivered to Genesis and your advisors a proposal on December 29th and has not received any response

In response to Winklevoss’ allegations, DCG CEO Barry Silbert stated that the company did not borrow $1.675 billion from Genesis. DCG has never happened to miss an interest payment to Genesis and is on track on all loans; the next loan maturity is in May 2023. DCG conveyed an offer to Genesis and your consultants on December 29th and has yet to receive a reply.

The Winklevoss further said to Barry Silbert to stop pretending that he and DCG are innocent bystanders who had nothing to do with the mess. It’s completely misleading. So, if DCG did not borrow the money, how does it owe Genesis $1.675 billion? 

DCG and Genesis: The next Crypto War?

According to Reuters, Genesis said in a letter to customers on December 7 that it was continuing to work to maintain client assets and solidify liquidity, but that it would take “weeks rather than days” to create a strategy.

It is worth noting that a multiple simultaneous class action lawsuit was filed against Gemini in early December by investors Brendan Picha and Max J. Hastings, accusing the exchange participated in the sale of unauthorized securities through its Earn program. In short, the story so far looks like this: