As matters continue to unfold with Genesis, Cameron Winklevoss, co-founder of crypto exchange Gemini, has threatened to file a lawsuit against crypto conglomerate Digital Currency Group (DCG) and its CEO Barry Silbert following DCG’s lending unit Genesis filing for a chapter 11 bankruptcy protection.
Gemini Co-Founder To File Lawsuit Against DCG
In a series of tweets uploaded earlier today, Winklevoss expressed bitterness and said unless DCG and Silbert make a “fair offer” to Gemini’s Earn customers, legal action will be taken against them “imminently.” Gemini is Genesis’s biggest creditor, claiming $766 million.
Winklevoss said in the tweets, “We have been preparing 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. Crucially, the decision to put Genesis into bankruptcy does not insulate Barry, DCG, and any other wrongdoers from accountability.”
Winklevoss has so far been involved in a back-and-forth situation with DCG and Silbert over the Gemini loan repayment. According to Winklevoss, Silbert had mixed up funds of several managed companies within DCG and joined in “bad faith stall tactics” as Gemini attempted to recall the funds.
Genesis Files For Bankruptcy
Notably, this news comes after Genesis Global Holdco LLC, the parent company of one of the prominent cryptocurrency lenders Genesis Global Capital, filed for Chapter 11 bankruptcy protection yesterday, citing significant losses from crypto hedge fund Three Arrows Capital and crypto exchange FTX crash.
The crypto lender initially signaled its incoming bankruptcy filing late last year, disclosing its effort to raise at least $1 billion for an emergency loan after alerting clients it would suspend redemptions.
