The Gemini CEO has been embroiled in a public feud with DCG for weeks over the repayment of a $900 million debt.
In a tweet released only minutes after Genesis filed for Chapter 11 late Thursday night, Gemini CEO Cameron Winklevoss threatened to sue Digital Currency Group CEO Barry Silbert over the repayment of a $900 million loan. The tweet came after Winklevoss engaged in a Twitter spat with DCG to collect the money, despite his exchange’s own difficulties.
Winklevoss called the lender’s bankruptcy a “critical step” toward recovering the assets of Gemini users. He will still sue Silbert and Genesis’ parent firm, DCG, unless Silbert makes a “fair offer” to the company’s creditors.
“We have been ready to take direct legal action against Barry, DCG, and those who share responsibility for the scam that has harmed the 340,000+ Earn users and others who have been deceived by Genesis and its partners,” Winklevoss stated.
This current round of tweets comes after a public feud between Winklevoss and Silbert over the repayment of a $900 million loan Gemini paid to Genesis. During the heated debate, Winklevoss demanded Silbert be fired from DCG, claiming that Silbert had misappropriated cash across the several firms he runs and engaged in “bad faith stall tactics” while Gemini fought to reclaim its millions.
Genesis Global Capital, on the other hand, challenged Gemini’s allegation in its voluntary chapter 11 bankruptcy case. Genesis claims that the $900 million loan is the net proceeds of the foreclosure of certain assets and questions whether the foreclosure complied with applicable law.
In his most recent tweets, Winklevoss also restated his prior claims that Silbert refused to work with Gemini to develop a repayment plan for the debt.
DCG is also CoinDesk’s parent firm.
“While we have worked around the clock to find an acceptable solution, @BarrySilbert, and @DCGco — Genesis’ parent business — continue to refuse to offer creditors a fair settlement,” Winklevoss said.
In 2021, Gemini and Genesis formed a partnership for Gemini Earn, a high-yielding programme serving hundreds of thousands of US investors. For the “Earn” offering, Gemini borrowed user funds to Genesis, who then loaned the funds to other crypto businesses.
However, Genesis froze redemptions and new loan originations in November after making a series of problematic loans to failed crypto businesses such as Three Arrows Capital and FTX. Gemini Earn users, unable to access their monies, turned on Winklevoss, suing him and his co-founder brother for suspected fraud.
Genesis’ bankruptcy notice comes at a time when both firms are battling authorities. In a lawsuit filed late last week, the Securities and Exchange Commission (SEC) claimed Gemini and Genesis offered unregistered securities.
