Gemini CoFounder Cameron Winklevoss Accuses Barry Silbert and DCG of Fraud in Open Letter to DCG Board

• Gemini partnered with DCG's Genesis to generate yield for their consumer facing Gemini Earn product.
• Withdrawals from Genesis have been frozen for nearly two months due to a series of bad loans.
• Gemini Earn's 340K users have not been able to withdraw their money as a result.

Here’s what happened. We are learning more by the day, but at present, the basic events as we understand them are as follows: Genesis lent $2.36 billion of assets to 3AC, a Singapore-based hedge fund that went belly up in June 2022. After collateral was liquidated, Genesis indicated that it was left with a loss of at least $1.2 billion. At this point, Barry Silbert had two legitimate options: restructure the Genesis loan book (inside or outside of bankruptcy court) or fill the $1.2 billion hole. He did neither.

At that point in time, the Genesis loan book was approximately $8 billion, which means that the $1.2 billion loss from 3AC would account for roughly 15% of the loan book’s assets. A restructuring then could have addressed this shortfall to achieve a full recovery of assets for all lenders — including Earn users — in a short amount of time and given them direct access to liquidity. But Barry chose not to do this. He also chose not to fill the $1.2 billion hole. Instead, he pretended to.

Beginning in early July 2022, Barry, DCG, and Genesis embarked on a carefully crafted campaign of lies to make Gemini, Earn users, and other lenders believe that DCG had injected $1.2 billion of actual support into Genesis.

Full Letter: