Gemini’s Founder and CEO, Cameron Winklevoss, is once again threatening legal action against Digital Currency Group (DCG) and its CEO, Barry Silbert, over delays in resolving the issue of funds owed to Gemini by bankrupt lender Genesis.
In an open letter to Silbert on July 4, Winklevoss accused DCG of engaging in fraudulent behavior, creating a culture of lies and deceit that has negatively impacted Gemini’s 232,000 Earn users.
One of the key accusations in Winklevoss’ letter is that Silbert intentionally delayed the resolution by abusing the mediation process.
Winklevoss claims that through mediation, DCG has obtained an indefinite forbearance on the $630 million it owes Genesis, essentially for free.
Winklevoss expressed his dismay at Silbert’s attempt to portray himself as a victim in this situation, stating that it takes a special kind of person to owe billions of dollars and still consider themselves a victim.
Genesis, the lender behind Gemini’s Earn program, temporarily suspended withdrawals on November 16, 2022, citing unprecedented market turmoil.
Subsequently, Genesis filed for bankruptcy on January 19, 2023, leaving Gemini seeking to recover its portion of the outstanding debt.
However, Winklevoss claims that there have been multiple delays in resolving the matter, leading him to take a decisive stance. He warned Silbert that his games are over and demanded acceptance of Gemini’s best and final offer by 4 pm Eastern Time on July 6.
Failure to comply would result in a lawsuit on July 7.
Gemini’s offer to DCG includes a payment of $275 million by July 21, an additional $355 million before July 21, 2025, and a final payment of $835 million by July 21, 2028.
The total payment amounts to $1.47 billion. Winklevoss specifically requested that the payments be made in the form of Bitcoin (BTC), Ether (ETH), and the United States dollar.
The funds would be sourced from various entities, including Genesis Global Trading, potential payouts from FTX and Alameda Research’s bankruptcy estates, and tokens such as Avalanche (AVAX) and Near (NEAR) that may be claimed from the Three Arrows Capital’s bankruptcy estate.
Cointelegraph reached out to DCG for comment, but there was no immediate response.
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