The founder of one of the biggest crypto exchanges in the world has penned an open letter asking for answers from Barry Silbert about issues surrounding Genesis.
Crypto exchange Gemini was recently hit with a class action lawsuit for allegedly issuing unregistered securities through the firm’s Earn program.
Under the Earn program, Gemini partnered up with crypto lender Genesis to provide traders with up to 8% returns on their holdings. However, earlier this month Genesis announced that FTX’s collapse greatly affected its finances and it could no longer pay out investors of Gemini’s Earn program.
In an open letter to Barry Silbert, founder of Digital Currency Group (DCG), the parent company behind Genesis, Winklevoss makes it clear where he thinks the blame lies.
Below is the letter in its entirety.
Choosing not to remain silent, Silbert responded on Twitter, saying that much of what Winklevoss said was false.
“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.”
Winklevoss appears not to accept Silbert’s response, and says his answer is “completely disingenuous.” The Gemini founder also gives Silbert a January 8th deadline to solve the issue, though it’s not clear what exactly could happen on that date.
“There you go again. Stop trying to pretend that you and DCG are innocent bystanders and had nothing to do with creating this mess. It’s completely disingenuous.
So how does DCG owe Genesis $1.675 billion if it didn’t borrow the money? Oh right, that promissory note…
Will you, or will you not, commit to solving this by January 8th in a manner that treats the $1.1 billion promissory note as $1.1 billion?”
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