Cameron Winklevoss, the co-founder of Gemini, has issued a public letter to Barry Silbert, the founder of the Digital Currency Group (DCG) concerning Gemini Earn, a lending and borrowing crypto platform, and Genesis which provided the lending and borrowing service.
Winklevoss said Earn is owed $900 million which belongs to teachers, policemen, and other ordinary investors.
It is now six weeks since Genesis halted withdrawals, and Silbert has still refused to meet to resolve the situation, Winklevoss said.
Winklevoss further held Silbert himself accountable as he claimed DCG owes Genesis, its subsidiary, $1.6 billion.
These funds were used to “fuel greedy share buybacks, illiquid venture investments, and kamikaze Grayscale NAV trades that ballooned the fee generating AUM of your Trust,” Winklevoss said.
“DCG did not borrow $1.675 billion from Genesis,” Silbert said. “DCG has never missed an interest payment to Genesis and is current on all loans outstanding; next loan maturity is May 2023
DCG delivered to Genesis and your advisors a proposal on December 29th and has not received any response.”
“How does DCG owe Genesis $1.675 billion if it didn’t borrow the money? Oh right, that promissory note,” was Winklevoss’ reply. “Will you, or will you not, commit to solving this by January 8th in a manner that treats the $1.1 billion promissory note as $1.1 billion?”
Silbert did not respond as of writing with this being the first public confrontation of these two class of 2013 cryptonians.
The tone moreover considering the sum in question is somewhat surprising as both Silbert and Winklevoss are thought to be worth far more than $1 billion.
Yet the matter has still not been resolved since November, with Winklevoss accusing Silbert of spending his time more on trying to firewall DCG from Genesis, than on resolving the matter.
Silbert however has until May to pay that promissory note, but the Winklevoss appear to be losing their patience.
One way to pay the funds quicker would be to sell Grayscale shares, 10% of which is owned by DCG.
The Grayscale Bitcoin Trust (GBTC) however is trading at a 50% discount to the global bitcoin price, or at about $9,000 rather than $17,000.
Such shares therefore would be sold at a significant loss, which may potentially explain the delay despite what may appear like small sums.