Just when we thought that the implications of the FTX collapse might have been over, things just got worse. The fallout of the 2nd largest crypto exchange has travelled much farther than we estimated. Reports suggest that Barry Silbert, a crypto executive, has left $900 million in customer assets in limbo as Gemini’s Cameron Winklevoss bashes and accuses him of “bad faith.”
What happened between Gemini and DCG?
Gemini Trust was founded by the twin brothers Cameron Winklevoss and Tyler Winklevoss. They introduced a product called Earn that lets users earn up to 8% in interest on their digital coin holdings. Gemini was able to offer such interest rates because they loaned out the digital coins to Genesis, which was owned by Barry Silbert’s company Digital Currency Group (DCG).
Earn had to halt redemptions of user tokens because of their exposure to FTX. Genesis even said that bankruptcy is one of the possibilities the company is looking at, and even if that’s not the case, it could take weeks before things are back on track.
Cameron said that the entire mess they are in is because of Barry Silbert, as DCG currently owes $1.675 billion to Gemini, which was user funds. DCG reportedly used these funds from Genesis for other purposes inside the company. Cameron also said that Barry has been trying to shield DCG from all the mess they have created at Gemini, due to which customers lost their money.
Barry’s defense and Cameron’s reply
https://twitter.com/BarrySilbert/status/1609926715454771200
After Cameron’s allegations, Barry tweeted that Digital Currency Group (DCG) didn’t borrow $1.675 billion from Genesis. He also claimed that DCG has never missed any interest payments to Genesis and their next loan maturity is in May 2023.
However, Cameron Winklevoss disregarded all these claims as he replied to Barry’s tweet asking him to stop pretending. According to Cameron, DCG and Barry are just trying to act as innocent bystanders while they are the very reason for this mess. He also said that a promissory note shows DCG owners $1.675 billion to Genesis.
Now, all Cameron asks of Barry is a commitment that they will work together to solve this problem which has affected over 340k Earn customers.
What are your thoughts as Cameron Winklevoss bashes Barry Silbert for the $1.675 billion loan DCG took from Genesis? Let us know in the comments below. And, if you found our content informative, share it with your family and friends.
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