Winklevoss twins and their cryptocurrency firm gemini are planning to file a lawsuit against digital currency group (dcg) and its ceo barry silbert unless they are offered a plan for repaying the $900 million loan. cameron winklevoss, the co-founder and president of gemini, tweeted that the lawsuit will be filed imminently if a fair offer is not made to creditors. late thursday, genesis trading, a subsidiary of dcg, filed for bankruptcy protection.
Loan was made to genesis trading in 2013, when it became the first firm to launch an over-the-counter bitcoin trading desk. the loan was under-collateralized, and genesis suffered losses from the collapses of ftx and hedge fund three arrows capital (3ac). genesis was named the biggest creditor to 3ac, passing the singapore-based firm $2.36 billion.
Winklevoss believes that putting genesis into bankruptcy does not insulate barry, dcg, and any other wrongdoers from accountability, and that judicial oversight and discovery will help recover the loan. the winklevoss twins are attempting to hold barry and dcg accountable for the under-collateralized loan that led to the losses of ftx and three arrows capital, and are demanding a plan for repaying the $900 million loan.