Barry Silbert, DCG Threatened With Lawsuit By Gemini Co-founder

Cameron Winklevoss, who helped start the cryptocurrency exchange Gemini, threatened to sue Digital Currency Group (DCG) and its CEO Barry Silbert after DCG’s lending unit Genesis filed for bankruptcy.

Winklevoss said in a series of tweets late Thursday that DCG and Silbert will be sued “imminently.” If they don’t make a “fair offer” to Gemini’s Earn customers. Gemini is Genesis’s biggest creditor, owing $766 million to the company.

“We have been preparing to take direct legal action against Barry, DCG, and others who share responsibility for the fraud that has caused harm to the 340,000+ Earn users and others duped by Genesis and its accomplices,” Winklevoss said in the tweets. “Crucially, the decision to put Genesis into bankruptcy does not insulate Barry, DCG, and any other wrongdoers from accountability.”

Winklevoss has been publicly fighting with DCG and Silbert over the loan payment for the past few weeks. Winklevoss asked DCG to fire Silbert, saying that Silbert had mixed funds from the different companies. He manages there and used “bad faith stall tactics” when Gemini tried to get the money back.

Genesis said in a press release that its restructuring process under bankruptcy protection has a “holistic solution.” If reached, “would provide the best outcome for Genesis clients and Gemini Earn users.”

Genesis Global Holdco LLC, the parent company of Genesis Global Capital, a troubled cryptocurrency lender, filed for Chapter 11 bankruptcy protection late Thursday. The company had taken a lot of damage from the failures of cryptocurrency hedge fund Three Arrows Capital and cryptocurrency exchange FTX.

Genesis Global Holdco and its two subsidiaries, Genesis Asia Pacific Pte, filed three voluntary petitions in the U.S. Bankruptcy Court for the Southern District of New York. Ltd and Genesis Global Capital LLC.