The dispute between Gemini, the custody and exchange of the digital assets platform, founded by the Winklevoss twins, and Digital Currency Group (DCG) subsidiary, Genesis Global trading seems to have heightened as Gemini announce it has terminated the loan agreement between its customers and Genesis.
Gemini also highlighted it has terminated the Gemini Earn program, according to a news report from Coindesk. In addition, Gemini demanded that Genesis refund all unclaimed assets from the scheme while notifying its Earn users via official emails.
The email sent by Gemini also added that existing redemption requests are unaffected and still awaiting action from Genesis. Furthermore, Gemini said it would prioritize the recovery of customers’ funds and promised to update users on Tuesdays and Fridays of each week until the issue is resolved.
Shying away from the current feud with Cameron Winklevoss, Barry Silbert, the Founder, and CEO of DCG stated in a published update to shareholders that the crypto industry will need to put in a lot of effort to re-establish its credibility and reputation, which have been shattered by a wave of unprecedented fraud and criminal behavior.
Silbert, however, stated that DCG is dedicated to staying in the lead as the firm work to create a better financial system. He also advocated for collaboration in the future with industry players.
“To my colleagues in the trenches, now is the time to collaborate, celebrate each other’s successes, and work together to propel our industry forward,” says Silbert.
The Ongoing Feud Between Gemini and DCG
Genesis lending arm stopped customers’ lending withdrawals in November after losing funds in the defunct FTX exchange. The funds of Gemini earn users were then locked up in Genesis as a result of this because Genesis was responsible for providing the yield for Gemini earn users.
Cameron Winklevoss blasted DCG in an open letter posted to Twitter on Tuesday, accusing Gemini’s former lending partner of defrauding over 340,000 Earn users and misleading them about DCG’s solvency. Winklevoss also demanded that Barry Silbert should resign as the CEO of DCG.
A class action arbitration has also been filed by Gemini Earn customers against Genesis. Gemini’s earn users claim Genesis hid its insolvency status from the public thereby misleading investors.
The claimants also claimed that Genesis and DCG converted $2.3 billion in debt owed by the insolvent Three Arrows Capital into a $1.1 billion promissory note with a 10-year maturity.
