The letter explains that over $900 million of Gemini Earn users' funds still need to be made available, despite repeated efforts by Gemini to engage with Silbert and DCG. Winklevoss alleges that these efforts, which include proposals made on December 17th and 25th, have been met with "lawyers, investment bankers, and process" rather than tangible engagement.
The funds in question became frozen in mid-November when the bankruptcy of FTX triggered liquidity crises at Genesis and DCG. Genesis Global Capital, a lending business under Genesis Trading, has suspended redemptions and new loan originations. Winklevoss claims that DCG owes Genesis around $1.7 billion, money owed to Gemini Earn users. Silbert has denied this, stating that DCG has never missed an interest payment to Genesis and is current on all outstanding loans.
DCG Delivers Proposal to Gemini, Claims Lack of Response
In response to Winklevoss's allegations, Silbert took to Twitter to defend DCG and claim that his company delivered a proposal to Gemini on December 29th but has yet to receive a response. He also reiterated that DCG has never missed an interest payment to Genesis and is current on all outstanding loans.
The ongoing dispute between Gemini and DCG comes as the Winklevoss twins and their company face a potential class action lawsuit. Investors have accused Gemini and its founders of fraud and violations of the Exchange Act in a proposed class-action complaint filed in Manhattan. In his letter, Winklevoss has called on both sides to commit to "working together to solve this problem" by January 8th.