Gemini's Cameron Winklevoss Slams Crypto Exec Barry Silbert Over Frozen Funds

Crypto entrepreneur Cameron Winklevoss is accusing fellow businessman Barry Silbert of "bad faith stall tactics" in resolving a dispute between their two companies that grew out of the collapse of FTX. From a report: Gemini, owned by Winklevoss and his twin brother, paused redemptions on a lending product called Earn. It had offered investors the potential to generate as much as 8% in interest on their digital coins -- by lending them out to Genesis Global Capital, one of the companies owned by Silbert's Digital Currency Group (DCG). Genesis owes Gemini's customers $900 million, Winklevoss said in an open letter to Silbert. The Earn halt came in November, after Genesis revealed it had $175 million locked in an account on Sam Bankman-Fried's bankrupt FTX crypto exchange. Genesis, which suspended both redemptions and new loan originations at the lending unit, has told clients that it could take "weeks" to find a path forward. Winklevoss, facing pressure of his own from angry customers locked out of their Gemini accounts and a lawsuit alleging fraud, said he had provided Silbert with multiple proposals to resolve the issue, including most recently on Dec. 25. "Despite this, you continue to refuse to get into a room with us to hash out a resolution," Winklevoss wrote. "In addition, you continue to refuse to agree to a timeline with key milestones. 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." Silbert's response: "DCG did not borrow $1.675 billion from Genesis. DCG has never missed an interest payment to Genesis and is current on all loans outstanding; next loan maturity is May 2023. DCG delivered to Genesis and your advisors a proposal on December 29th and has not received any response."

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