Cameron Winklevoss, cofounder of digital token exchange Gemini, has issued Barry Silbert a one-week ultimatum to cough up nearly $1 billion.
The crypto baron behind unlisted Digital Currency Group (DCG), owner of entities from Bitcoin ETF fund manager Grayscale to news site CoinDesk, must find a solution to make Gemini users whole, and he has until Jan. 8 to do so.
Winklevoss on Monday accused Silbert of “unconscionable” behavior by hiding away from his creditors in an “ivory tower.” In an open letter, the Gemini president said he was acting as a steward for the more than 340,000 Gemini Earn users, whose over $900 million in crypto has been trapped at DCG’s Genesis Global Capital (GGC) since mid-November.
“You took this money—the money of schoolteachers—to fuel greedy share buybacks, illiquid venture investments and kamikaze Grayscale NAV [net asset value] trades that ballooned the fee-generating AUM [assets under management] of your trust,” wrote Winklevoss in the letter posted to Twitter, “all at the expense of creditors and all for your own personal gain.”
— Cameron Winklevoss (@cameron) January 2, 2023
Winklevoss and his identical twin brother, Tyler, first rose to prominence through their lawsuit against Mark Zuckerberg, who they claimed stole their idea for Facebook during their undergraduate studies at Harvard University—an account retold theatrically in the 2010 film The Social Network. The two later bought their first Bitcoin on defunct exchange Mt. Gox and went on to found Gemini.
Cameron Winklevoss said his customers’ patience had all but run out: “For the final time, we are asking you to publicly commit to working together to solve this problem by Jan. 8.”
Genesis had been trying to gradually restructure and de-risk its balance sheet ever since the collapse of a major creditor, crypto hedge fund Three Arrows Capital (3AC), back in July.
Nate Anderson, the head of short-seller Hindenburg Research, discovered at the time that Genesis had extended a partially collateralized $2.36 billion…