Cameron Winklevoss of Gemini Sends Terms to DCG, Barry Silbert

The ongoing battler between the Digital Currency Group (DCG) and Gemini has ratcheted up as Cameron Winklevoss has sent a demand letter to DCG and founder Barry Silbert.

To take a step back, Gemini had utilized the services of DCG subsidiary Genesis for its yield service. Last year, Genesis “paused” withdrawals leaving thousands of investors stuck without access to their funds. The pause was driven by the crypto turmoil and the collapse of multiple firms.

Last January, Winklevoss sent a letter to SilbertWinklevoss sent a letter to Silbert lambasting him and his company. At that time, Winklevoss stated:

“Digital Currency Group (DCG) – of which you are the founder and CEO – owes Genesis (its wholly owned subsidiary) ~$1.675 billion. This is money that Genesis owes to Earn users and other creditors. You took this money – the money of schoolteachers – to fuel greedy share buybacks, illiquid venture investments, and kamikaze Grayscale NAV trades that ballooned the fee-generating AUM of your Trust; all at the expense of creditors and all for your own personal gain. It is now time for you to take responsibility for this and do the right thing.”

The right thing, according to Winklevoss, was to give the money back. That did not happen.

Yesterday on the eve of the 4th of July, Winklevoss scripted another letter making demands along with a deadline for Silbert and DCG to act.

The open letter was followed by a term sheet that is described as the best and final offer for Silbert and DCG.

Winklevoss has declared the stalemate as now “Game Over” and if terms are not met by this Friday (July 6, 2023) a lawsuit will be filed the following day against both Barry Silbert and DCG.

The terms below, will most likely not be met, queuing about a large crypto-sphere legal battle.

Winklevoss claims that DCG has engaged in fraudulent behavior leaving 232,000 earn customers blocked from $1.2 billion of their funds. The accusatory letter comes after “229 days” since Genesis halted withdrawals.

If you are interested in a deeper dive into the legal jousting, Ram Ahluwalia has produced a video dissecting the letter and the term sheet step by step providing his analysis of what will probably end up being decided by the courts in a painful manner.





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