Gemini co-founder Cameron Winklevoss has published an open letter to Digital Currency Group (DCG) CEO Barry Silbert. It says it’s been 47 days since the Earn program was suspended for 340,000 users, totaling $900 million.
Earn Update: An Open Letter to @BarrySilbert pic.twitter.com/kouAviTho4
— Cameron Winklevoss (@cameron) January 2, 2023
“Over the past six weeks, we have been doing everything possible to work in good faith with you to reach an agreed solution, according to which you would be able to pay $900 million,” the document says.
According to Winklevoss, Silbert is “practicing the tactics of unfair delay in the process.”
Earn’s landing product offered investors an income of up to 8% per annum on deposits made. In mid-November, Gemini suspended payments for the program. This happened once morest the backdrop of financial problems of the main partner, the Genesis Trading OTC platform.
According to media reports, the firm and its parent structure DCG owed $900 million to exchange clients.
December 23 and 27 Gemini team assuredthat continues to work with Genesis and DCG to resolve the issue despite the holidays.
Winklevoss stressed in the letter that the exchange was able to contact Silbert on December 2, on December 17 to propose an initial solution to the problem, and on December 25 an updated scenario for overcoming the crisis.
“Every time we call for real engagement, you are hiding behind lawyers, investment bankers and process,” lamented the founder of Gemini.
According to him, DCG’s obligations to the subsidiary amount to $1.675 billion – “funds that Genesis owes to Earn users and other creditors”:
“You used this school teacher money to make greedy stock buybacks, venture capital investments and Grayscale kamikaze deals that hyped AUM your trust. And all this at the expense of creditors, for your personal benefit.
Silbert responded by stressing that DCG did not borrow $1.675 billion from Genesis. He added that his company approached Genesis and Gemini on Dec. 29 with an offer, but received no response.
DCG did not borrow $1.675 billion from Genesis
DCG has never missed an interest payment to Genesis and is current on all loans outstanding; next loan maturity is May 2023
DCG delivered to Genesis and your advisors a proposal on December 29th and has not received any response
— Barry Silbert (@BarrySilbert) January 2, 2023
At the end of the letter, Winklevoss urged Silbert to make a commitment to resolve the issue by 8 January.
Recall that in December investors submitted a class action lawsuit once morest Gemini and its founders Tyler and Cameron Winklevoss for the sale of unregistered securities in the form of Earn Interest Accounts.
The document states that the exchange “refused to make any payouts, effectively destroying the remaining assets in the program.”
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