While withdrawals from the “Earn” investment program launched by Gemini have stopped pause, a letter posted yesterday on Twitter comes to liven up the situation a little more. A new conflict that will not reassure customers, who have been unable to withdraw their funds for 48 days now.
Genesis of the Genesis case
It was from this first week of the year that a new episode of the story Twins x Genesis decided to come and invade the crypto ecosystem. it is in fact, Cameron WinklevossGemini co-founder sounding the alarm by publicly posting a letter of accusation towards something Barry Silbert, CEO of Genesis. A letter posted on Twitter accusing Barry of divert funds from users who have come to invest in the program”to gain“, to DCGthe big group behind Genesis.
It will be remembered that Gemini is an investment platform that has launched a new program called “Earn” in partnership with Genesis, the company owned by Barry Silbert and his group. Digital Currency Group (DCG). The two companies will enter into a deal so that Genesis can take care of the part loan of the new program launched by Gemini. Everything will be fine, until mid-November, when the withdrawals it will be suddenly paused following the collapse of FTP extension which will be followed by that of 3BC itself a consequence of the failure of moon, and that will put Genesis in a complicated situation. Following these events, Genesis will block withdrawals from 340,000 users of the “Earn” program representing a total sum of more than 900 million dollars.
48 days later, Cameron Winklevoss, tired of this situation, publishes a letter on Twitter denouncing the disastrous communication by Barry Silbert as well as his own no transparency following the events. He will denounce the fact that Barry refuses any appointment with the Gemini teams to clarify the situation in order to agree on a possible joint decision.
“Despite this, you still refuse to enter a room with us to discuss a solution. […] After six weeks, your behavior is not only completely unacceptable, it’s also unacceptable. »
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Gemini-Genesis case: the tone is rising
But the situation will not stop there as Cameron Winklevoss will go so far as to accuse him of divert part of funds of the “Make Money” program to other DCG group companies, also owned by Barry.
“To be clear, this mess is entirely of your own making. Digital Currency Group (DCG) – of which you are founder and CEO – owes Genesis (its wholly owned subsidiary) approximately $1.675 billion. This is the money Genesis owes Earn users and other creditors. You took that money to fuel greedy stock buybacks, illiquid venture capital investments…”
Accusations that Silbert to decline totally responding that it would never borrow a total of $1.675 billion from Genesis to support the Digital Currency Group. Having hundreds of thousands of investors stranded following Genesis’ suspended withdrawals on the “Earn” program, Cameron Winklevoss then co-founder of Gemini, will also have his shares of responsibility towards its customers. Responsibility that he could not assume without the help of Genesis given the astronomical amount requested.
Cameron will then request Barry to post an inventory of the solvency of Genesis before January 8th 2023. An inventory that will have an impact on the ecosystem given the quantity and high number of customers affected.
A new lying poker game between two giants of the cryptocurrency industry where the bluff directly affects the funds of thousands of users. This is not the first time centralized exchanges have been blamed divert funds, but it remains unprecedented for two bosses, in partnership on the same investment product, to publicly attack each other. Who’s wrong, who’s right? No one will know until the final verdict.