Gemini co-founder Cameron Winklevoss has published an open letter to Digital Currency Group (DCG) CEO Barry Silbert. He says it has been 47 days since the Earn program was suspended for 340,000 users, for a total of $900 million.
Earn Upgrade: An Open Letter to @BarrySilbert pic.twitter.com/kouAviTho4
— Cameron Winklevoss (@cameron) January 2, 2023
“Over the past six weeks, we’ve done everything we can to work in good faith with you to reach an agreed settlement, under which you would be able to pay $900 million,” the filing said.
According to Winklevoss, Silbert is “practicing the tactic of unfair delay in trial”.
Earn’s Landing product offered investors an income of up to 8% annually on deposits made. In mid-November, Gemini suspended payments for the program. This happened against the background of the financial problems of the main partner, the Genesis Trading OTC platform.
According to media reports, the company and its parent structure DCG it owed $900 million to trade customers.
December 23rd and 27th Gemini team insuredwho continues to work with Genesis and DCG to resolve the issue despite the holidays.
Winklevoss underlined 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 ask for a real commitment, you hide behind lawyers, investment bankers and lawsuits,” the Gemini founder complained.
According to him, DCG’s obligations to the subsidiary total $1.675 billion – “funds Genesis owes Earn users and other creditors”:
“You used this school teacher’s money to make greedy stock buybacks, venture capital investments, and grayscale suicide bomber deals that they publicized INCREASE your trust. And all this at the expense of creditors, for your personal benefit.
Silbert responded by pointing out 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 up to date on all outstanding loans; the next loan deadline is May 2023
DCG handed Genesis and its consultants a proposal on December 29 and has not received a response
— Barry Silbert (@BarrySilbert) January 2, 2023
At the end of the letter, Winklevoss urged Silbert to commit to resolving the matter by 8 January.
Recall that in December investors introduced a class action lawsuit against 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 payments, effectively destroying the remaining assets in the program.”
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