Gemini’s Cameron Winklevoss Issues 3-day Ultimatum to DCG CEO

Summary: Gemini's co-founder and president, Cameron Winklevoss, has issued a 3-day conditional ultimatum to Barry Silbert, CEO of Digital Currency Group (DCG), if they don't accept the revised offer by July 6, 2023, then they have to face legal action. He accused Silbert of encouraging a dishonest culture and not addressing false claims made to creditors.

In yet another open letter, Cameron Winklevoss, co-founder and president of crypto exchange Gemini, issued a 3-day conditional ultimatum to Barry Silbert, creator and CEO of struggling crypto giant Digital Currency Group (the parent firm of insolvent crypto lender Genesis). If Silbert and DCG don’t accept the revised offer by 4 pm ET on July 6, 2023, Gemini’s president has warned of legal action.

Accused of Playing the Victim

In an open letter published on July 3, Winklevoss accused Silbert of attempting to play the victim after DCG’s illegal actions locked up more than $1.2 billion in assets belonging to Gemini Earn customers in Genesis. According to him, Silbert encouraged a dishonest culture that is well-documented at this point, and he still hasn’t addressed the false claims made to creditors.

Winklevoss stated:

“You offer no apology to creditors and Earn users for holding their money hostage during the holiday season. No apology for the stress, anxiety, and pain you have caused them and their families. And no apology for the burned bridges and value destruction you have caused our entire industry. No contrition or acknowledgment whatsoever.”

FTX Founder SBF Better Claim

Even Sam Bankman-Fried (SBF), the founder and former CEO of defunct crypto exchange FTX, was not capable of such folly, according to the president of Gemini. After seeing his acts had caused harm to others, he said, SBF at least made an effort to make amends.

No Intentions of Reaching an Amicable Settlement

Silbert was accused of misusing the mediation process and deliberately creating delays to purchase time, among other things, in Winklevoss’ letter. Winklevoss claimed that Silbert has no intention of reaching an amicable settlement with creditors and Gemini Earn customers ever since Genesis suspended withdrawal services.

Winklevoss will also submit a turnover motion, which would require the immediate payment of $630 million to Gemini Earn users and creditors. Together with the Genesis Special Committee, they will adopt a non-consensual strategy that gives cash right away to creditors and Earn users.

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To further probe intercompany loans and transactions between DCG and Genesis businesses, the president of Gemini will request the Unsecured Creditors Committee (UCC) to initiate appropriate legal action.