Gemini Co-Founder Accuses DCG’s Silbert of 'Bad Faith' Stalling in $900M Locked Funds Dispute

Cameron Winklevoss blasted Silbert in an open letter posted to Twitter, alleging crypto broker Genesis Global Capital and its parent company, DCG, owe Gemini’s clients $900 million. The letter alleges that the Gemini have been waiting unsuccessfully for a refund agreement for six weeks. Dcg is the head office of Coindesk.

Silbert replied on Twitter that the DCM submitted a proposal to Genesis and Gemini's advisors on December 29, 2022 and received no response.

Winklevoss also accused DCG CEO Barry Silbert of using $1.675 billion in money Winklevoss claimed DCG borrowed from Genesis and using it for purposes that helped other DCG ventures instead of repaying creditors. Dcg also owns coindesk.

“You took that money - the professors' money - to feed the buy-outs of greedy stock, illiquid risk exposures, and kamikaze grayscale NAV transactions that inflated assets under management generating charges from your trust, all of this to the detriment of creditors and all of this for your personal benefit."

Silbert responded, tweeting that DCG “did not borrow $1.675 billion from Genesis." He also reported that DCG has never missed a payment of interest to Genesis and is up to date on all outstanding loans.

Gemini trust partnership, which is Winklevoss' and his twin brother's property, has put buybacks on hold on a product that earns interest called a "win" in mid-November, one week after rival Crypto Exchange ftx went out of business. The product offered to investors returns opportunities up to 8% interest on their cryptography by loaning these digital tokens to genesis.

The buyout break for Gemini came after Genesis announced that its derivatives business had about $175 million locked into the now insolvent ftx platform. Genesis suspended withdrawals and the granting of new loans when it declared bankruptcy. Since that time, the original creditors have been working with restructuring lawyers to prevent insolvency.

The letter from Winklevoss arrived at a time when his company was facing serious financial difficulties, including a lawsuit against the firm's proceeds of earnings alleging fraud and breaches of securities laws and a bunch of angry clients winning who were unable to access their accounts.

No further comments were received from Winklevoss or Silbert.

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