1: digital currency group (dcg) and its founder and ceo barry silbert, as well as gemini co-founder cameron winklevoss, were involved in a dispute where dcg allegedly owes genesis $1.675 billion. gemini earn, a high-yield savings product, was affected by the situation as genesis served as its primary lending partner. as a result, gemini halted withdrawals for its earn users after genesis suspended loan withdrawals in november.
2: the dispute between dcg and gemini began in november when genesis suspended customer withdrawals. last week, gemini customers filed a class action suit against the company, alleging that earn’s interest-bearing products should have been registered as securities. in response, cameron winklevoss issued an open letter to barry silbert, accusing him of using “bad faith stall tactics” to resolve the situation and asked him to publicly commit to resolving the crisis by january 8th.
3: dcg has denied the framing of the issue and stated that they have not borrowed $1.675 billion from genesis, have never missed an interest payment, and are current on all loans outstanding. barry silbert had tried to reassure investors in november that dcg faced no imminent threat. however, winklevoss warned that silbert’s behavior is “not only completely unacceptable, it is unconscionable” and that his idea of “quietly hiding in his ivory tower” and this issue magically going away is “pure fantasy.” dcg had delivered a proposal to genesis and their advisors on december 29th and had not received any response.
