DCG Genesis Funds: Gemini cofounder Cameron Winklevoss wrote an open letter to Barry Silbert, CEO of Digital Currency Group (DCG) over the delay in halting Genesis withdrawals. He addressed the issue of 340,000 Earn users who are awaiting resumption of withdrawals. The users put together entrusted more than $900 million of assets, he said. Overall, Winklevoss indicated that Barry Silbert needs to immediately meet the Gemini management to reach a resolution.
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To Put An End To The Crisis
Digital Currency Group (DCG) owes Genesis $1.675 billion, which in turn is owed by Genesis to Earn users and other creditors, Winklevoss added. It is now time for you to take responsibility for this and do the right thing, he said. He also accused Silbert of trying to protect DCG from the problems at Genesis. Winklevoss mentioned in the letter that the Gemini Earn users are tired and in dire situation.
“For the past six weeks, we have done everything we can to engage with you in a good faith and collaborative manner in order to reach a consensual resolution for you to pay back the $900 million that you owe.”
On November 16, 2022, just after the FTX collapse, Genesis took a key decision on withdrawals. The lending division of the cryptocurrency investment bank said it temporarily stopped redemptions and initiating new loans. Following this, it was speculated that Genesis would follow FTX in announcing bankruptcy. However, Genesis denied rumors that it was on the verge of declaring bankruptcy.
In this context, the Gemini cofounder asked Silbert to work together for a solution by January 8, 2023. He added that it was becoming clear that Silbert had been engaging in bad faith tactics with regard to resuming the withdrawals.
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