Cameron Winklevoss, co-founder of crypto-exchange Gemini, has threatened to file a lawsuit against Digital Currency Group (DGC) and its CEO Barry Silbert. The lawsuit relates to the $900 million Genesis Trading owes Gemini.
Summary
Winklevoss exposes himself on Twitter and threatens legal action against DGC and its CEO
In a roundup of tweets, Cameron Winklevoss, co-founder of Gemini‘s crypto-exchange, explained how the platform is acting to help its Earn users given that Genesis’ platform has filed for bankruptcy.
This is a $900 million claim that Gemini would have against Genesis, which in fact it has failed to repay, causing great harm to the more than 340,000 Earn users and others misled by Genesis and its accomplices.
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
Genesis Global Capital LLC is a subsidiary of Digital Currency Group, run by its CEO Barry Silbert. It was the first company in the industry to launch an over-the-counter Bitcoin trading desk in 2013, but filed for bankruptcy protection last Thursday.
Winklevoss has threatened to take legal action against DCG and Silbert specifically if the two entities refuse to offer creditors a fair settlement.
Winklevoss and the Genesis bankruptcy
Winklevoss also announced that Genesis Global Capital LLC (Genesis) reportedly filed for bankruptcy, and that this could be good news for credit recovery.
In fact, by seeking bankruptcy court protection, Winklevoss points out that Genesis will be subject to judicial supervision and will be obligated to provide information about the machinations that led to this point.
Not only that, the Gemini co-founder stresses that Genesis’ bankruptcy should not isolate itself from its parent company Digital Currency Group and its CEO, especially when it comes to the recovery of its Earn users’ debts.
Genesis’ debt exceeds $3 billion
Last week, it was revealed that Genesis’ total debt to its creditors exceeds $3 billion.
DCG had announced that it was considering selling venture assets to raise the funds to pay off the debt. Specifically, it was considering selling parts of DCG’s venture capital holding, which include 200 crypto-related projects with a total value of about $500 million.
Not only that, Barry Silbert had also told shareholders that they would cut 30% of Genesis’ workforce.
However, none of these maneuvers seem to have been enough to sustain the amount of debt, to the point where they had to file for bankruptcy.
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