Gemini Issues Ultimatum: Threatens Legal Action Against DCG and Barry Silbert Over $630 Million Debt
Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has issued yet another open letter to Digital Currency Group (DCG) and its CEO, Barry Silbert. The letter, dated July 3, serves as a direct warning to DCG, stating that if they fail to agree to Gemini’s final offer, legal action will be taken against them. The consequences of this legal action would put DCG into a state of default, demanding immediate payment of the substantial $630 million owed to creditors.
Gemini’s open letter is written on behalf of 232,000 Earn users who have been affected by the ongoing troubles surrounding Genesis, a company owned and controlled by DCG. These users currently have over $1.2 billion worth of assets trapped within the Genesis platform.
Earn Update: An Open Letter to @BarrySilbert pic.twitter.com/ErsYpcEjQD
— Cameron Winklevoss (@cameron) July 4, 2023
The letter pulls no punches in its scathing critique of Barry Silbert and DCG, accusing them of fostering a culture of lies and deceit. It highlights various instances of alleged fraudulent behavior and misleading statements made by Silbert and DCG entities to creditors, including the falsification of financial documents. Surprisingly, Silbert failed to address or refute any of these allegations in his response to the previous open letter.
Gemini’s letter takes aim at Silbert’s previous public statement to shareholders, which seemed to deflect from the pressing issues at hand and instead focused on Silbert’s personal feelings. The open letter criticizes Silbert’s lack of contrition and apology to creditors and Earn users for the hardships they have endured as a result of their assets being held hostage during the holiday season.
Gemini’s scathing rebuke continues, accusing Silbert and DCG of playing a carefully crafted game to buy time and raise funds at the expense of creditors and Earn users. It alleges that Silbert engaged in fraudulent activities, including a deceptive transaction involving a promissory note, all in an effort to evade responsibility and prepare for a protracted legal battle.
The letter also highlights the failure of DCG to raise the necessary funds to pay off the $630 million loan owed to Genesis, which was due in May of this year. This failure, according to Gemini, has further damaged creditors and Earn users while undermining any potential resolution in the ongoing mediation process.
Gemini concludes the open letter by presenting a best and final offer to DCG, which it believes is fair and reasonable for all parties involved. Should DCG fail to accept this offer by the specified deadline, Gemini outlines a series of actions it plans to take, including filing a lawsuit against DCG and Barry Silbert personally, demanding immediate payment, and advancing a non-consensual plan for distributions to creditors and Earn users.
Gemini expresses its commitment to working with the Genesis Special Committee to bring an end to the mediation process and initiate the bankruptcy process promptly, with the ultimate goal of providing relief to the affected Earn users.
The open letter from Gemini serves as a clear indication of their frustration and determination to seek justice for the thousands of users who have been affected by the Genesis debacle. It remains to be seen how DCG and Barry Silbert will respond to these threats of legal action, but one thing is certain: the battle between Gemini and DCG is far from over, and the fate of Genesis and its creditors hangs in the balance.
Read more:
- Genesis Lent $2.36 Billion To Three Arrows Capital, Which Recently Filed For Chapter 15 Bankruptcy
- Genesis Reaches Agreement In Principle With DCG And Key Creditors, Gemini Contributes $100 Million For Its Gemini Earn Users
- Gemini And Genesis Fight Back: Request Dismissal Of SEC Lawsuit Over Earn Product