Winklevoss says crypto broker Genesis negotiating in bad faith

(Reuters) – Cameron Winklevoss, who co-founded cryptocurrency exchange Gemini Trust with his twin brother, announced on Monday that Barry Silbert, CEO of Digital Currency Group (DCG) as a “dishonest stalling tactic” and called for a commitment to settle $900 million worth of funds.By January 8th, he

Gemini has partnered with DCG’s cryptocurrency company Genesis to offer a cryptocurrency lending product called Earn. Genesis suspended customer withdrawals in November following the collapse of his major cryptocurrency exchange, FTX.

Winklevoss said Genesis owes more than $900 million to about 340,000 Earn investors and has been trying to reach a “consensual settlement” with Silbert over the past six weeks.

“But it is becoming clear that you were involved in vicious stall tactics,” writes Winklevoss. open letter To Mr. Silver posted on Twitter.

“We are asking you to make a public commitment to work together to resolve this issue by January 8, 2023,” he added. The letter did not mention what would happen if no agreement was reached by January 8.

Winklevoss writes that DCG owes Genesis $1.675 billion, which is money Genesis owes to Earn users and other creditors, and that “this mess is entirely your own.” I’m sorry,” he added.

Silbert replied Tweet That DCG didn’t borrow $1.675 billion from Genesis.

“DCG has never defaulted on any interest payments to Genesis and is currently underway on all outstanding loans,” Silbert said, with DCG submitting a proposal to advisors to Genesis and Winklevoss on Dec. 29. He added that there was no response.

In a Dec. 7 letter to customers, Genesis said it was working to preserve client assets and strengthen liquidity, adding that it would take “weeks, not days” to plan.

Reporting by Mrinmay Dey, Bangalore Editing by Tiffany Wu and Matthew Lewis

Our criteria: Thomson Reuters Trust Principles.

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