- Another open letter from Cameron Winklevoss has made damaging allegations against DCG.
- Barry Silbert has been called as delusional as Sam Bankman-Fried.
- A Pro-XRP lawyer wants to know why this isn’t in the courts if the allegations are true.
When crypto lender Genesis filed for bankruptcy on January 19, it owed 50 different creditors around $3.5 billion. One of those owed is the Winklevoss Twins’ crypto exchange, Gemini, and they are still irked by the money owed.
Cameron Winklevoss has penned an open letter to Digital Currency Group (DCG) and its CEO Barry Silbert, who was the lender behind Gemini’s Earn program.
Cameron has thrown several substantial allegations towards DCG, such as “fraudulent behavior” and engaging in a “culture of lies and deceit.” He has also put a final, billion-dollar-plus offer on the table.
Worse than SBF?
Cameron lists off a number of allegations of how DCG handled itself in owing $1.2 billion to Gemini’s 232,000 Earn customers. He outlines that it has been 229 days since services were halted and claims DCG hid the company’s financial health and falsified balance sheets.
He goes on to directly “break down [Silbert’s] own game,” highlighting areas where he:
- Committed fraud: Lying to creditors that DCG had absorbed $1.2 billion in losses incurred from the collapse of Three Arrows Capital.
- Fought the Promissory Note: Pretending to go through the motions of negotiating a deal with creditors and positioning DCG to litigate the promissory note in court.
- Raising Money to Paydown $630 Million Loan: Paying the DCG loan back to Genesis saved DCG from default. This, alleges Cameron, has been the focus rather than making creditors whole.
- Abusing the Mediation Process: Facing a second default and bankruptcy in less than six months, DCG sought mediation to buy more time.
Through these allegations, Cameron went so far as to liken Silbert to disgraced FTX founder Sam Bankman-Fried, stating:
“It takes a special kind of parson to owe $3.3 billion dollars to hundreds of thousands of people and believes, or at least pretend to believe, that they are some kind of victim. Not even Sam Bankman-Fried was capable of such delusion.”
Prove the Claims & Litigate
With such serious claims made by Cameron toward DCG and Silbert, someone quite good at litigation has wondered why this isn’t going to court.
Sponsored
John E Deaton, the founder of CryptoLaw, and Pro-XRP Lawyer, also took to Twitter to urge Cameron to take the matter to court. He asks: “If Cameron can prove what he claims, why not just file the damn suit?”
As it stands, Cameron has outlined an out-of-court offer that is set to expire on Thursday, July 6. This offer calls for a total repayment of $1.465 billion broken down into a forbearance payment and two debt tranches. Cameron states that they will be heading to court if the demand is not agreed upon by the deadline.
Cameron rounds out his open letter with his comparison of Silbert to Bankman-Fried but also reiterates his stance that the DCG CEO should do the right thing by Gemini’s Earn users.
On the Flipside
- This is not the first open letter by Cameron, as on January 2, Winklevoss also laid out some allegations and accused Silbert of engaging in “bad faith stall tactics” related to Genesis’ $900 million debt to Gemini Earn customers.
Why This Matters
At the heart of the matter are 232,000 Earn customers who are still out of pocket from the collapse of Genesis and are waiting on action from DCG and Gemini.
Read more about the relationship between Cameron Winklevoss and Barry Silbert:
Who Are Cameron Winklevoss and Barry Silbert? Gemini and DCG Conflict Explained
Read more about the reworked ARK ETF application:
Ark Invest Matches BlackRock in Bitcoin ETF Race with Reworked Application
