February 8, 2023

Crypto Exchange Gemini to File Class Action Arbitration Case Against Genesis and DCG

Gemini exchange co-founder Cameron Winklevoss has come out to accuse the DCG founder Barry Silbert of hindering the recovery funds for Gemini Earn users.

According to his latest accusation, Winklevoss purported that Silbert has been using bad-faith stall tactics. He further charged the Bitcoin Trust founder with attempts to commingle funds using his conglomerate.

The accusations were published in the form of an open letter posted on Twitter by the Gemini President. He inquired after the inability of Gemini users being unable to access more than $900 million in funds.

These frozen funds are present on the crypto brokerage platform Genesis and have become inaccessible to its consumers despite several attempts.

Gemini Exchange is Working with DCG Chief to Release the Stuck Funds

The Winklevoss Brother has claimed that the company has exclaimed that Gemini officials have been cooperating with the DCG founder. He also alleged that all attempts to make sure the recovery of the funds has been ignored by Silbert would ensure that no harm comes to DCG despite releasing the due payments for their clients.

He talked about a six-week-long negotiation with DCG CEO to reclaim the $900 million in payables. It is worth noting that the outstanding amount in question has been frozen since last November. The unpaid reserves have been halted to deal with a liquidity crisis of Genesis following the decline of the FTX exchange.

In response to the allegations of Winklevoss about trying to delay due payments by hiding behind lawyers and investment bankers, Silbert has responded. He shared his public reply on Twitter, claiming that DCG issued a proper response to Gemini clients, but the crypto exchange has failed to submit an appropriate response.

On the other hand, Winklevoss has rebuked that DCG’s total liabilities towards Gemini are estimated to be around $1.7 billion.

Silbert has maintained that DCG has never missed any interest payments to Genesis. It is important to keep in mind that at present, Gemini exchange is facing the possibility of a class action lawsuit for its failure to register interest-bearing accounts that may be securities.

The lawsuit was already filed in a Manhattan court last week. Winklevoss has also added a plea in his letter for DCG to cooperate to solve this problem.

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