Gemini’s co-founder and president of digital currency exchange, Cameron Winklevoss accused Cameron Silbert, CEO of Digital Currency Group. In an open letter Winklevoss said that Silbert engaged in ‘bad faith stalling tactics’. However, he also insisted on resolving a lending dispute with the company following the fall of FTX. Previously, tensions rose from a pact Gemini owned with Genesis Global Capital. Genesis Global Capital is the leading arm of crypto investment firm, Digital Currency Group’s subsidiary.
From Gemini’s lending product, Gemini Earn, it offered users yields for more than 8%. So, in order to generate returns, the company lent users’ funds to Genesis Global Capital. However, in turn loaned them out to institutional borrowers. Furthermore, when FTX filed for bankruptcy, Gemini put on hold redemptions for its Gemini Earn. This was because Genesis Global Capital also suspended new loan originations and redemptions. In this case, the company denied exposure to Sam Bankman-Fried’s crypto. On the other hand, Genesis posted on Twitter in November that around $175 million funds are locked inside FTX.
As a result, in an open letter, Winklevoss alleged Silbert for refusing to meet with the Gemini team on multiple occasions. The firm attempts to meet in order to find resolution to the liquidity crisis encountered by numbers of Gemini Earn clients. In the letter, Genesis holds more than $900 million from Gemini Earn clients. In public, Wunklevoss said that in a few months, he had made many attempts to engage in a good faith and collaborative manner with Genesis. But for Winklevoss, Silbert has engaged in bad faith stall tactics.