Gemini Co-Founder, Cameron Winklevoss, has threatened legal action against the Digital Currency Group (DCG) in the aftermath of Genesis recently filing for Chapter 11 bankruptcy.
Winklevoss announced on his Twitter that the DCG and its CEO, Barry Silbert, will be facing a lawsuit against them if the company “come to their senses” and make an offer to pay more than 340,000 ‘Earn’ creditors, a partner program between its subsidiary Genesis and Gemini.
Cameron Winklevoss and his twin brother Tyler, was reported to have sent $900m of Gemini customer funds over to Genesis and are now in dispute, claiming that Silbert is performing “bad faith stall tactics”.
5/ We have been preparing to take direct legal action against Barry, DCG, and others who share responsibility for the fraud that has caused harm to the 340,000+ Earn users and others duped by Genesis and its accomplices.
— Cameron Winklevoss (@cameron) January 20, 2023
6/ Unless Barry and DCG come to their senses and make a fair offer to creditors, we will be filing a lawsuit against Barry and DCG imminently.
— Cameron Winklevoss (@cameron) January 20, 2023
Gemini’s Earn partner Genesis filed for bankruptcy in a Manhattan court yesterday after recent struggles stemming from the fallout of the FTX collapse. The cryptocurrency lender was then subject to an investigation by the Department of Justice over the transferring of funds between Genesis and the DCG.
Winklevoss clarified that Genesis filing for bankruptcy was a ‘crucial step’ in order to recover funds for Earn customers.
He said: “The good news is that, by seeking the protection of the bankruptcy court, Genesis will be subject to judicial oversight and be required to provide discovery into the machinations that brought us to this point.
“Meanwhile, we will use every tool available to us in the bankruptcy court to maximise recovery for Earn users and any other parties within the bankruptcy court’s jurisdiction.
“We also believe that — in addition to owing creditors all of their money back — Genesis, DCG, and Barry owes them an explanation. Bankruptcy court provides a much-needed forum for that to happen. Sunlight is the best disinfectant.”
Gemini has also been placed under investigation in recent weeks by the US Security and Exchange Commission (SEC), due to security flaws following FTX’s collapse and the unpaid money between themselves and Genesis. The crypto trader stated that they were “disappointed” by the SEC investigation” and believes it “does nothing to further our efforts and help Earn users get their assets back”.
