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Tracy Wang
Tracy is a deputy managing editor at CoinDesk. It possesses btc, eth, mina, ens, miscellaneous stablecoins, and a few nfts.
Twins Winklevoss' crypto-swap Gemini intensified its dispute with the digital currency group (DCG) Genesis Global Trading – partner in a crypto loan product that is presented to smaller investors – putting an end to one key aspect of their relationship.
Gemini has terminated the primary loan agreement (mla) between its clients and genesis, gemini told its gemini clients to win in an email on Tuesday. "This officially ends the gain program and requires Genesis to return all outstanding assets in the program," says Gemini's email. "Current buyback applications are unaffected and continue to wait for Genesis to process them."
In an official statement, a spokesperson for Genesis said the company does "not agree with everything that Gemini has said" and was "disappointed that Gemini is waging a public media campaign despite ongoing productive private dialogue between the parties." He added: "This is a very complex process that will take some additional time."
Crypto broker Genesis' lending arm halted customer withdrawals in November in the aftermath of FTX's collapse. Who locked up Gemini gets the money from the clients. Gemini Earn was launched in February 2021 and marketed as an interest-earning account for cryptocurrency deposits, with Genesis supplying the yield Gemini Earn investors received.
The end of Gemini comes into force in January. 8, the deadline the company previously set in a Jan. 2 public letter to CEO Barry Silbert of DCG, the parent company of Genesis (and CoinDesk). The letter also alleged that Silbert was "engaging in delaying tactics in bad faith" during the negotiations.
The decision to terminate the partnership comes amid other signs the feud between Gemini co-founder Cameron Winklevoss and Barry Silbert is heating up.
On Tuesday, Winklevoss penned another public letter calling for the ouster of Silbert and accused DCG and Genesis of committing accounting fraud. The allegation of fraud reappeared in a gemini filed in court on the same day in response to a legal proceeding filed by Gemini wins clients.
"Gemini is also a victim of genesis/ DCG of group leadership", the court deposit read. 'Gemini also suffers from the conduct of the Genesis/DCG Group,' he said."
In the court filing, Gemini also deflected blame from angry customers, saying their complaint "goes after the wrong parties" and that users acknowledged in writing that their assets in the Earn product "faced the risk of total loss."
Additionally, Gemini denied all claims made in the lawsuit because customers had signed an agreement to "arbitrate all claims relating to the Gemini Earn program" and that plaintiffs' claims and causes of action "should not be litigated in any forum unless Genesis is joined."
UPDATE (Jan. 10, 2023, 17:59 UTC): Adds a statement from Genesis.
