Cameron Winklevoss issues 3-day ultimatum to DCG’s Barry Silbert, threatens lawsuit

Cameron Winklevoss, co-founder and chairman of cryptocurrency exchange Gemini, has given Barry Silbert, founder and CEO of beleaguered crypto empire Digital Currency Group (parent company of bankrupt crypto lender Genesis) a 3-day ultimatum in another open letter. ,

The Gemini chairman threatened to sue Silbert and DCG if they failed to agree to the newly submitted proposal by July 6, 2023 at 4PM ET.

Winklevoss criticizes Silbert of DCG

In an open letter from the Winklevoss dated July 3 criticized Silbert was blamed for playing the victim card when Gemini Earn client assets got stuck at Genesis due to DCG’s fraudulent practices. They said Silbert fostered a culture of lies and deception, which is now documented in the public record, and did not address misleading statements he made to creditors.

“You deserve no apologies to creditors and Earn users for holding up your money during the holiday season. There is no apology for the stress, anxiety and pain you have caused them and their families. And there’s no apology for the bridges you’ve burned and the value destruction you’ve caused throughout our industry. Winklevoss said, “No remorse or confession of any kind.”

The Gemini chairman insisted that even Sam Bankman-Fried (SBF), the founder and former CEO of bankrupt crypto exchange FTX, was not capable of such delusions. He said the SBF had at least tried to set things right after accepting that its actions had hurt others.

Among various allegations in the Winklevoss’ letter, Silbert was accused of abusing the arbitration process and deliberately delaying to buy time. The Winklevoss argued that since the day Genesis halted its withdrawal services, Silbert had never had any intention of finding an agreed solution with creditors and Gemini Earn users.

To this effect, the Winklevoss proposed a “best and final offer”, which he described as fair and reasonable to all involved, representing a floor that creditors would accept.

3 day ultimatum

According to the Winklevoss, failure to accept the offer would have several legal consequences. On July 7, Gemini executives and their exchange sued Silbert and DCG, outlining the CEO’s liability in concealing Genesis’ bankruptcy.

In addition, the Winklevoss will file a turnover motion, seeking immediate payment of $630 million owed to Gemini Earn users and creditors. They will also work with the Genesis Special Committee to implement a nonconsensual plan that provides for immediate distribution to creditors and Earned Users.

In addition, the Gemini chairman will demand that the Unsecured Creditors Committee (UCC) take legal steps as part of its investigation into intercorporate loans and transactions between DCG and the Genesis entities.