Gemini co-founder and prominent crypto entrepreneur Cameron Winklevoss has leveled serious allegations of fraud against Barry Silbert, the founder of Digital Currency Group (DCG), in a scathing open letter.
Winklevoss did not mince words in his latest missive to Silbert, accusing both him and DCG of cultivating a culture of deceit and misinformation, ultimately misleading the company’s stakeholders and creditors.
This development comes after more than six months since Winklevoss first penned an open letter directed at Silbert.
In a bid to highlight his grievances, Winklevoss took to Twitter to share the open letter with his substantial following of over 700,000 users.
The letter, which Winklevoss claimed to be representing the 232,000 stranded users of Gemini Earn, emphasized the fact that DCG-owned Genesis had suspended withdrawals, leaving the users in limbo since the previous year.
Notably, DCG owes a staggering $1.2 billion to the affected Gemini Earn users, with an additional $2.1 billion in debt owed to other creditors, as Winklevoss reminded Silbert.
Winklevoss made his dissatisfaction abundantly clear, stating, “It takes a special kind of person to owe $3.3 billion dollars to hundreds of thousands of people and believe, or at least pretend to believe, that they are some kind of victim. Not even Sam Bankman-Fried was capable of such delusion.”
The crux of Winklevoss’s accusations against Digital Currency Group revolve around fraudulent practices.
He pointed to the dissemination of false and misleading statements by Silbert and his associates to conceal Genesis’s insolvency and overall financial state.
In his proposed restructuring plan, Winklevoss outlined that the outstanding $630 million debt owed by DCG to Genesis would be divided into two components.
Firstly, a forbearance payment of $275 million would be due on or before July 21, 2023. Subsequently, a Tranche 1 payment of $355 million would become due two years from the date of the Plan Support Agreement (PSA).
Finally, the Tranche 2 payment of $835 million, which includes a discount of $25 million, would be due five years from the effective date of the PSA.
Winklevoss explicitly warned Silbert that failure to comply with this restructuring plan would result in a lawsuit being filed against DCG and Silbert personally.