Digital Currency Group CEO Barry Silbert has refuted Gemini co-founder Cameron Winklevoss's allegations that his venture capital company owes hundreds of millions to the cryptocurrency platform.
What Happened: Winklevoss said on Monday that DCG parent Genesis Global Capital owes Gemini’s clients $900 million, and despite waiting six weeks for a repayment agreement, he claimed Gemini is yet to receive any response on the matter.
Silbert countered saying that DCG did not borrow the $1.675 billion from Genesis and is “current on all loans” it has outstanding with them. He added that DCG made a proposal to Genesis and some advisors on Dec. 29 but has not been met with a response.
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
— Barry Silbert (@BarrySilbert) January 2, 2023
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The Dispute: Gemini Trust Co, a company operated by Winklevoss, gave investors the opportunity to obtain a potential 8% return by lending their cryptocurrency tokens to Genesis Global Capital through DCG. As per Bloomberg, Earn — the product involved in this transaction — had to be put on hold in November when it was found out that $175 million was stuck in an account at Sam Bankman-Fried's bankrupt crypto exchange FTX.
The Winklevoss twins accused Silbert of taking $1.675 billion and employing it for ends that aided other DCG ventures such as "greedy" share buybacks instead of repaying creditors.
Peter Schiff, a gold bull, said that Gemini customers were denied access to their funds due to a private creditor's liquidity or solvency issues, whereas the same would happen in a conventional bank due to a government mandate despite the money being physically present.
In your case customers lost access to the funds due do the liquidity or solvency issues of a private creditor. In the case of my bank, customers have been denied access to their funds for over 6 months by government, despite every penny being in cash ready to return to customers.
— Peter Schiff (@PeterSchiff) January 2, 2023