Gemini co-founder Cameron Winklevoss has printed an open letter to Digital Foreign money Group (DCG) CEO Barry Silbert, calling on him to resolve liquidity points which have plagued the cryptocurrency alternate. The letter, which was shared on Twitter on Monday, was written on behalf of 340,000 Gemini Earn customers, based on Winklevoss.
The liquidity points started in mid-November 2022, when the lending arm of Genesis World Capital, a key associate for Gemini’s Earn product, halted withdrawals and mortgage originations. The transfer prompted Gemini to pause withdrawals from Earn, resulting in accusations from prospects that the alternate had defrauded them with a nasty deal. A category motion lawsuit towards Gemini is reportedly being ready because of this.
Within the open letter, Winklevoss claims that DCG owes Genesis $1.675 billion, and accuses the corporate of utilizing the funds to “gasoline grasping share buybacks, illiquid enterprise investments, and kamikaze Grayscale NAV trades.” He additionally alleges that the DCG CEO has tried to “firewall” the corporate from the issues at Genesis, and urges Silbert to decide to a decision by January 8, 2023.
Silbert has denied the allegations made by Winklevoss, stating that DCG has by no means missed an curiosity cost to Genesis and is present on all excellent loans. He additionally claims that DCG offered a proposal to Genesis and its advisors on December 29, 2022, however has not obtained any response.
The open letter comes amid mounting frustration from each prospects and buyers within the cryptocurrency house, who’ve grown more and more involved in regards to the lack of liquidity and transparency out there. It stays to be seen how the dispute between Gemini and DCG shall be resolved, however it’s clear that the difficulty just isn’t going away anytime quickly.