Gemini co-founder Cameron Winklevoss threatened a lawsuit against crypto conglomerate Digital Currency Group (DCG) and its CEO Barry Silbert if they failed to make a “fair offer” to creditors like Gemini Earn users.
Gemini is prepared to take “direct legal action against Barry, DCG, and others who share responsibility for the fraud that has caused harm to the 340,000+ Earn users and others duped by Genesis and its accomplices,” according to Winklevoss’ Jan. 20 Twitter thread.
Genesis’ bankruptcy, a crucial step
Winklevoss said Genesis’ bankruptcy was crucial to recovering Earn users’ assets. He added that the bankruptcy would subject the firm to a judicial oversight that would force it to reveal “machinations that brought us to this point.”
However, he argued that Genesis’ bankruptcy does not insulate Silbert or DCG. Winklevoss added:
“We also believe that — in addition to owing creditors all of their money back — Genesis, DCG, and Barry owes them an explanation. Bankruptcy court provides a much-needed forum for that to happen. Sunlight is the best disinfectant.”
Winklevoss and Silbert have been engaged in a public dispute over the $900 million owed by Genesis to Gemini Earn. The exchange co-founder accused Silbert of employing “bad faith stall tactics” and called for Silbert to be sacked.
Meanwhile, Genesis disputed the claim that it owes Gemini customers $900 million — court filing showing that the debt to Gemini Earn customers stands at $765.9 million.
The U.S. Securities and Exchange Commission (SEC) charged both firms with selling unregistered securities offerings on Jan. 12.
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