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Crypto exchange Gemini’s cofounder on Tuesday called for the removal of Digital Currency Group’s chief executive Barry Silbert, amid tension between the two companies, in the aftermath of FTX’s collapse.
Some users of Gemini’s Earn program, who lent out their crypto through DCG’s subsidiary Genesis to earn interests, have been unable to access a total of more than $900 million in funds, according to several media reports. Genesis’s lending arm has ceased redemptions since November, as the contagion of FTX’s bankruptcy spread.
Winklevoss said Gemini and its more than 340,000 Earn users have been “defrauded” by Genesis and DCG, in a letter to the board of DCG published on Twitter Tuesday.
In the letter, Winklevoss accused Genesis and DCG of making “false statements and misrepresentations” about the solvency and financial health of Genesis. Silbert “has proven himself unfit to run DCG and unwilling and unable to find a resolution with creditors that is both fair and resonable,” Winklevoss wrote in the letter.
In response, a DCG spokesperson wrote to MarketWatch that “this is another desperate and unconstructive publicity stunt from Cameron Winklevoss to deflect blame from himself and Gemini, who are solely responsible for operating Gemini Earn and marketing the program to its customers.”
“DCG will continue to engage in productive dialogue with Genesis and its creditors with the goal of arriving at a solution that works for all parties.” the spokesperson wrote.
Winklevoss published his first open letter to Silbert on Twitter on Jan.2, accusing the DCG chief of “bad faith stall tactics” and asking him to commit to solve the situation by Jan. 8. DCG has yet to make any relevant announcements.
Silbert said that DCG delivered to Genesis and Gemini’s advisors a proposal on Dec. 29th and has not received any response.
