Winklevoss says crypto broker Genesis is trading in bad faith

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Jan 2 (Reuters) – Cameron Winklevoss, who founded crypto exchange Gemini Trust Co with his twin brother, on Monday accused Digital Currency Group (DCG) CEO Barry Silbert of “bad faith blocking tactics” and asked him to pledge to solve 900 million dollars. disputed client assets by January 8.

Gemini has a crypto lending product called Earn in partnership with DCG’s crypto company Genesis. Genesis halted client withdrawals in November, following the collapse of major crypto exchange FTX.

Winklevoss said Genesis owed more than $900 million to some 340,000 Earn investors and had been trying to reach a “consensual resolution” with Silbert for six weeks.

“However, it now becomes clear that you engaged in bad faith stall tactics,” Winklevoss wrote in an open letter to Silbert that was posted on Twitter.

“We ask that you publicly commit to working together to resolve this issue by January 8, 2023,” he added. The letter did not say what would happen if an agreement was not reached by January 8.

Winklevoss wrote that DCG owed Genesis $1.675 billion, which Genesis in turn owed to Earn users and other creditors, adding that “this mess is all your doing.”

Silbert replied in a tweet that DCG did not borrow $1.675 billion from Genesis.

“DCG has never missed an interest payment to Genesis and is current on all outstanding loans,” Silbert said, adding that DCG delivered a proposal to Genesis and Winklevoss advisers on Dec. not received a response.

Genesis wrote in a letter to clients Dec. 7 that it was working to preserve client assets and bolster liquidity, adding that it would take “weeks rather than days” to come up with a plan.

Reporting by Mrinmay Dey in Bengaluru Editing by Tiffany Wu and Matthew Lewis

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