• Cameron Winklevoss, co-founder of Gemini, threatened to file a lawsuit against Digital Currency Group (DCG) and its CEO Barry Silbert if they failed to make a „fair offer“ to creditors.
• Winklevoss argued that Genesis‘ bankruptcy does not insulate Silbert or DCG, and that they owe creditors an explanation.
• This follows a public dispute between Winklevoss and Silbert over the $900 million owed by Genesis to Gemini Earn.
Cryptocurrency giant Digital Currency Group (DCG) and its CEO Barry Silbert have been put on notice by Gemini co-founder Cameron Winklevoss. Winklevoss recently threatened to file a lawsuit against the two if they failed to make a “fair offer” to creditors, such as the users of Gemini Earn.
In a Jan. 20 Twitter thread, Winklevoss stated that the bankrupting of Genesis was an essential step in recovering the assets of Earn users. He added that the bankruptcy will also subject the firm to judicial oversight and make it reveal “machinations that brought us to this point”.
However, Winklevoss argued that Genesis’ bankruptcy does not insulate Silbert or DCG from accountability. He wrote, “We also believe that — in addition to owing creditors all of their money back — Genesis, DCG, and Barry owes them an explanation. Bankruptcy court provides a much-needed forum for that to happen. Sunlight is the best disinfectant.”
The dispute between Winklevoss and Silbert stems from the $900 million owed by Genesis to Gemini Earn. Winklevoss has accused Silbert of employing “bad faith stall tactics”, and has called for him to be sacked. In response, Genesis CEO Michael Moro has said that they are committed to addressing the debt.
The public dispute has caused much debate in the cryptocurrency community. Gemini has been vocal in its support of the Earn users, and has called on DCG and Silbert to make good on their promises.
It remains to be seen how the situation will play out, but it is clear that Winklevoss is not afraid to take legal action if necessary. He has made it clear that he believes that Genesis, DCG and Silbert owe the Earn users not just their money, but also an explanation.