Silbert dealing with bad faith stall tactics, Winklevoss claims
Business
Winklevoss says Genesis owes more than $900 million to 340,000 Earn investors
NEW YORK - (Reuters) Cameron Winklevoss charged CEO Barry Silbert of Digital Currency Group (DCG) with "bad faith stall tactics" and demanded from him to resolve $900 million in disputed client assets by January 8.
Winklevoss had founded crypto exchange Gemini Trust Co with his twin brother.
Together with DCG s cryptocurrency company Genesis, Gemini has offered a loan service for cryptocurrencies called Earn. Following the demise of significant cryptocurrency exchange FTX, Genesis had stopped accepting customer withdrawals in November.
Winklevoss said that Genesis owed more than $900 million to 340,000 Earn investors and that he had been working with Silbert for the previous six weeks to find a "consensual resolution".
Winklevoss wrote an open letter to Silbert on Twitter saying, "However it is now becoming evident that you have been participating in bad faith delay tactics."
He said, "We are asking you to publicly commit to working together to address this problem." However, the letter didn’t mention about what would transpire if a deal could not be struck by January 8.
Winklevoss said, "This disaster is all of your own doing," after stating that DCG owed Genesis $1.675 billion which Genesis in turn owed to Earn users and other creditors.
In response, Silbert tweeted that DCG had not lent Genesis $1.675 billion.
Genesis wrote in a letter to clients on December 7 that it was working to preserve client assets and strengthen liquidity.
