Gemini’s Cameron Winklevoss Slams Crypto Exec Barry Silbert Over Frozen Funds

(Bloomberg) — The fallout from the collapse of Sam Bankman-Fried’s crypto empire just got messier, with digital-asset entrepreneur Cameron Winklevoss accusing fellow businessman Barry Silbert of “bad faith stall tactics” and the intermingling of funds within his conglomerate that Winklevoss says have left $900 million in customer assets needlessly in limbo since FTX’s meltdown.

Most Read from Bloomberg

Gemini Trust Co., founded by Winklevoss and his twin brother, paused redemptions on a lending product called Earn, which offered investors the potential to generate as much as 8% in interest on their digital coins. It did so by lending them out to Genesis Global Capital, one of the companies owned by Silbert’s Digital Currency Group.

The Earn halt came in November after Genesis suspended both redemptions and new loan originations at its lending unit because of its exposure to FTX. Genesis has told clients that it could take “weeks” to find a path forward, and that bankruptcy may be one possibility.

Winklevoss, facing pressure of his own from angry customers locked out of their Gemini accounts and a lawsuit alleging fraud, in an open letter Monday said he had provided Silbert with multiple proposals to resolve the issue, including as recently as Dec. 25. He told Silbert “this mess is entirely of your own making,” citing some $1.675 billion owed to Genesis by DCG, which it used for other business purposes within Silbert’s conglomerate. “This is money that Genesis owes to Earn users and other creditors.”

Read more:Gemini, Winklevoss Twins Sued for Fraud Over Earn Accounts

“It’s not lost on us that you’ve been working desperately to try and firewall DCG from the problems that you created at Genesis,” Winklevoss wrote. “You should dispense with this fiction because we all know what you know — that DCG and Genesis are beyond commingled.”

Story continues

Read more: Genesis Balance Sheet Reveals Web of Loans Across Silbert Empire

Silbert in a tweeted response refuted several accusations in Wilkevoss’s letter, saying “DCG did not borrow…


Read More

About The Author

Related posts