Gemini Founders Accuse DCG of Bad Faith Stall Tactics Over $900M Debt
• Gemini Trust Co. co-founder Cameron Winklevoss has accused Digital Currency Group (DCG) CEO Barry Silbert of “bad faith stall tactics” regarding a $900 million debt.
• Winklevoss also accused DCG of using $1.675 billion owed to Genesis and Gemini, to fuel “greedy share buybacks, illiquid venture investments, and kamikaze Grayscale NAV trades”.
• DCG has responded that they did not borrow $1.675 billion from Genesis and that they are current on all loans outstanding.
The crypto exchange Gemini, founded by brothers Cameron and Tyler Winklevoss, has accused their rival, Digital Currency Group (DCG), of “bad faith stall tactics” in a disagreement over a $900 million debt. The dispute was triggered by the multi-billion-dollar implosion of FTX last November.
In an open letter posted to Twitter, Cameron Winklevoss alleged that DCG, via its parent company Genesis Global Capital, owes Gemini’s clients the money. He claimed that Gemini has been waiting for six weeks for a repayment agreement, but has not heard from DCG yet.
DCG CEO Barry Silbert responded by tweeting that DCG had delivered a proposal to Gemini’s advisers on December 29th, but had not received any response. He further stated that DCG has never missed an interest payment to Genesis and is current on all loans outstanding.
Winklevoss further accused Silbert of using the $1.675 billion allegedly owed to Genesis and Gemini’s clients for personal gain. He alleged that the money was used to fund “greedy share buybacks, illiquid venture investments, and kamikaze Grayscale NAV trades”, all at the expense of creditors.
Silbert denied this allegation, tweeting that DCG had not borrowed $1.675 billion from Genesis. He further noted that the company has a $1.1 billion promissory note related to liabilities from Genesis related to the Three Arrows Capital default, however this is not related to the dispute with Gemini.
Gemini Trust Company, which is owned by the Winklevoss brothers, paused redemptions on an interest-earning product called Earn in mid-November. This was done in order to protect their clients from potential losses due to the dispute.
The Winklevoss brothers have urged DCG to come to the table and agree to a repayment plan. They have also asked the crypto community to join them in calling out DCG’s “unjust behavior”. Whether this disagreement will be resolved remains to be seen.