The debacle between the executives of Genesis and Gemini continues.
Cameron Winklevoss, the chief executive officer and founder of the crypto exchange Gemini, is preparing to take legal action against the Digital Currency Group (DCG) and its CEO Barry Silbert.
In an open letter addressed to Silbert, dated July 4th, Winklevoss leveled accusations of "fraudulent behavior" at DCG.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
Proof of Work vs Proof of Stake: Which is Better? (ANIMATED)
On top of that, Winklevoss was seemingly disappointed with the prolonged resolution process over the Gemini Earn product and criticized Silbert for allegedly portraying himself as a victim in the dispute.
The Gemini CEO claimed that these practices had hurt Gemini's 232,000 Earn users and created a "culture of lies and deceit."
Winklevoss went on to assert that Silbert deliberately stonewalled the resolution by exploiting the mediation process. "Mediation has given DCG an indefinite forbearance on the $630 million it owes Genesis — for free," he said.
Winklevoss expressed his strongest dismay at Silbert's perceived stance of being the "victim" in the fiasco. He remarked:
It takes a special kind of person to owe 3.3 billion dollars to hundreds of thousands of people and believe, or at least pretend to believe that they are some kind of victim. Not even Sam Bankman-Fried was capable of such delusion.
Genesis, the lending firm backing Gemini Exchange's Earn program, paused withdrawals on November 16th, citing "unprecedented market turmoil." This product had been offering potential returns of up to 8% to its depositors.
The company then filed for bankruptcy on January 19th, leaving Gemini in the lurch to recoup its share of billions owed by Genesis to creditors.
Despite the unfolding chaos, Winklevoss has accused Silbert of prolonging the resolution. As a result, professional fees have now "ballooned" to over $100 million, taking a toll on the credits and Earn users.
Winklevoss, evidently frustrated, has now laid down an ultimatum to Silbert. He has until 4 pm ET on July 6th to accept Gemini’s “best and final offer” or prepare for a lawsuit on July 7th.
This proposed offer includes a structured payment plan with DCG making payments totaling $1.47 billion by July 21st, 2028. The funds, to be paid in Bitcoin (BTC), Ether (ETH), and United States dollars (USD), are to be sourced from Genesis Global Trading, potential payouts from FTX and Alameda Research’s bankruptcy estates, and Avalanche (AVAX) and Near (NEAR) tokens from the bankruptcy estate of Three Arrows Capital.
Winklevoss's impending lawsuit marks a significant escalation in the ongoing dispute over the Genesis debacle. As the story unfolds, the resolution could have profound implications for the wider cryptocurrency industry.
