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Gemini co-founder claims DCG acted in bad faith; DCG CEO had this to say
Written by Written by Saman Waris
Reviewed by Reviewed by Saman Waris
Updated January 3, 2023
Gemini co-founder claims that Digital Currency Group is acting in bad faith
  • Gemini co-founder Cameron Winklevoss stated that DCG’s Barry Silbert has been acting in bad faith. 
  • However, Gilbert refuted the allegations and claimed that he has been cooperating with Gemini. 

Cameron Winklevoss, the co-founder of crypto exchange Gemini, has turned up the heat on Barry Silbert, the man behind the Digital Currency Group.

A sensational open letter shared by Winklevoss on Twitter on 2 January made allegations against the DCG chief’s conduct in light of the liquidity issues plaguing his crypto empire. 

Stall tactics in bad faith against Gemini?

Cameron Winklevoss alleged that Barry Silbert and DCG have engaged in stall tactics ever since Genesis Global Capital, a wholly owned crypto trading platform, halted withdrawals back in November 2022. 

The repayment of a whopping $900 million to Gemini’s Earn customers and other creditors is the issue at the center of this dispute. Winklevoss claimed that he and his firm collaborated and acted in good faith to reach a solution, but Silbert has not been cooperative. 

In his letter, Winklevoss deposed, 

“You continue to get into a room with us to hash out a solution. In addition, you continue to refuse to agree to a timeline with key milestones. Every time Every time we ask you for tangible engagement, you hide behind lawyers, investment bankers and process.” 

Cameron Winklevoss further alleged that Barry Silbert took $1.67 billion from Genesis to fund share buybacks, make investments in illiquid ventures and make Grayscale trades that boosted his assets under management (AUM). 

Barry Silbert’s response to allegations

Within an hour of Winklevoss’s tweet, Digital Currency Group CEO Barry Silbert responded to the allegations made against him. Silbert clarified that DCG had never borrowed $1.67 billion from its subsidiary Genesis.

Winklevoss countered by arguing that the transfer was made through a promissory note. 

https://twitter.com/BarrySilbert/status/1609926715454771200

Silbert revealed that his firm had never missed an interest payment to Genesis, with the next loan maturing in May 2023. He further alleged that DCG had, in fact, responded to Gemini’s proposal on 29 December 2022 and was waiting for a response. 

Meanwhile, three Gemini Earn users have filed a demand for class arbitration against Genesis Global Capital and DCG. The class action arbitration represents claimants seeking the return of digital assets and damages for breach of contract and the unregistered sale of securities.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.

Saman Waris

Editor

Saman Waris works as a Senior News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins.

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