November 28, 2023

Cameron Winklevoss wrote an open letter to Barry Silbert asking him to solve Gemini Earn users’ problems by Jan. 8

Gemini had partnered with Barry Silbert-led Genesis to provide yields to customers for its earn program. But post the collapse of FTX, Genesis got into a liquidity crunch and had to halt withdrawals, which eventually impacted 340,000 Gemini earn users.

Cameron Winklevoss Writes an Open Letter to Barry Silbert

Cameron Winklevoss writes an open letter to Barry Silbert seeking a resolution for the $900 million in customers’ funds stuck in Genesis. The Gemini founder mentions that they have been trying to engage with Genesis for the past six weeks but to no avail.

Cameron Winklevoss lashes out, “Every time we ask you for tangible engagement, you hide behind lawyers, investment bankers, and process. After six weeks, your behavior is not only completely unacceptable. It is unconscionable.”

The Gemini founder asked Barry Silbert to commit publicly to solving the problems of Earn customers by Jan. 8. He warned that “time is running out.”

Gemini recently faced the heat as several investors have sued the crypto exchange and its founders for offering Gemini’s Earn product without registering it as a security.

Will Grayscale Sell its Bitcoin Holdings?

The Gemini founder calls out Barry Silbert for comingling of funds between different companies he owns. Cameron Winklevoss writes, “​​Digital Currency Group (DCG) – of which you are the founder and CEO – owes Genesis (its wholly owned subsidiary) ~$1.675 billion. This is money that Genesis owes to Earn users and other creditors”.

Barry Silbert replied that DCG did not borrow $1.67 billion from Genesis. He also mentioned that they delivered a proposal to Gemini’s advisors but have not received any response. The community fears that to pay back the money, Grayscale will have to sell its BTC holdings, causing an avalanche in the crypto market.

The Barry Silbert- led DCG also owns one of the largest Bitcoin funds, i.e., the Grayscale Bitcoin Fund (GBTC). The fund has nearly $10.5 billion in assets under management. Will Barry Silbert sell GBTC Bitcoin holdings?

On the other hand, Valkyrie Investments offered to become the new sponsor and manager of the GBTC. Valkyrie launched a Bitcoin Futures Exchange Traded Fund (ETF) earlier in 2021.

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