Cameron Winklevoss, the co-founder of Gemini, has published a letter in which he accuses Genesis and its parent company, Digital Currency Group (DCG), of defrauding Gemini and over 340,000 Gemini Earn users. In addition, the letter claims Barry Silbert committed acts of fraud along with other key personnel within the companies.

According to the letter, rather than taking steps to restructure and protect users after the cryptocurrency hedge fund Three Arrows Capital (3AC) collapsed, Genesis “pretended” to fill a $1.2 billion hole in their loan book. The total amount lent to 3AC was $2.36 billion with losses of at least $1.2 billion. 

Winkelvoss states that “beginning in July 2022, Barry, DCG, and Genesis embarked on a carefully crafted campaign of lies to make Gemini, Earn users, and other lenders believe that DCG had injected $1.2 billion of actual support into Genesis.”

Additionally, Winklevoss describes how Genesis allegedly provided loans to 3AC without taking into account the risks associated with those loans. He goes on to claim that the cryptocurrency hedge fund was allegedly diverting investment into Grayscale Investments’ GBTC, which prevented the Trust from experiencing a growing discount. The Gemini Earn users were then exposed to this risk.

The letter concludes:

There is no path forward as long as Barry Silbert remains CEO of DCG. He has proven himself unfit to run DCG and unwilling and unable to find a resolution with creditors that is both fair and reasonable. As a result, Gemini, acting on behalf of 340,000 Earn users, requests that the Board remove Barry Silbert as CEO effective immediately, and install a new CEO, who will right the wrongs that occurred under Barry’s watch.

DCG’s Twitter account dismissed the claims made in the open letter by stating that the letter “is another desperate and unconstructive publicity stunt.”

The DCG Twitter account goes on to explain that they will seek to arrive at a solution for all parties involved.

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