Gemini co-founder Cameron Winklevoss has published an open letter to Digital Currency Group (DCG) CEO Barry Silbert, calling on him to resolve liquidity issues that have plagued the cryptocurrency exchange. The letter, which was shared on Twitter on Monday, was written on behalf of 340,000 Gemini Earn users, according to Winklevoss.
The liquidity issues began in mid-November 2022, when the lending arm of Genesis Global Capital, a key partner for Gemini’s Earn product, halted withdrawals and loan originations. The move prompted Gemini to pause withdrawals from Earn, leading to accusations from customers that the exchange had defrauded them with a bad deal. A class action lawsuit against Gemini is reportedly being prepared as a result.
In the open letter, Winklevoss claims that DCG owes Genesis $1.675 billion, and accuses the company of using the funds to “fuel greedy share buybacks, illiquid venture investments, and kamikaze Grayscale NAV trades.” He also alleges that the DCG CEO has tried to “firewall” the company from the problems at Genesis, and urges Silbert to commit to a resolution by January 8, 2023.
Silbert has denied the allegations made by Winklevoss, stating that DCG has never missed an interest payment to Genesis and is current on all outstanding loans. He also claims that DCG presented a proposal to Genesis and its advisors on December 29, 2022, but has not received any response.
The open letter comes amid mounting frustration from both customers and investors in the cryptocurrency space, who have grown increasingly concerned about the lack of liquidity and transparency in the market. It remains to be seen how the dispute between Gemini and DCG will be resolved, but it is clear that the issue is not going away anytime soon.
