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Winklevoss Threatens to Sue Barry Silbert and DCG Following Genesis Bankruptcy

Cameron Winklevoss, the co-founder of the cryptocurrency exchange Gemini, revealed today they are planning on taking direct legal actions against Digital Currency Group (DCG) and its CEO Barry Silbert, except they present a fair offer for reimbursing creditors of Genesis Global Capital, one of the businesses one by DCG.

Genesis’ Bankruptcy Doesn’t Insulate DCG and Silbert From Accountability

The statements come at the heels of Genesis’s bankruptcy late Thursday. Although the company’s bankruptcy declaration means a crucial step toward assets recovery for Gemini and creditors, Winklevoss’s decision “does not insulate Barry, DCG, and any other wrongdoers from accountability.”

In Winklvoss’s words, “unless Barry and DCG come to their senses and make a fair offer to creditors, we will be filing a lawsuit against Barry and DCG imminently.”

On January 10th, Gemini’s co-founder openly accused Digital Currency Group, Silbert, and other company executives of defrauding 340,000 customers of Gemini Earn. According to him, DCG made fake statements and misrepresented the solvency of Genesis, which consequently left Gemini users unable to access $766 million after Genesis suspended withdrawals.

Genesis Owes $3.5 Billion in Debt

From the bankruptcy filing, Genesis’ debts are estimated to be more than $3.5 billion. Following the Gemini exchange are Crypto-fund Mirana ($151.5 million), MoonAlpha Finance ($150 million), Cumberland ($18.7 million), and VanEck’s New Finance Income ($53 million), which made the top five creditors.

Cameron Winklevoss on Twitter: "7/ Meanwhile, we will use every tool available to us in the bankruptcy court to maximize recovery for Earn users and any other parties within the bankruptcy court's jurisdiction. / Twitter"

7/ Meanwhile, we will use every tool available to us in the bankruptcy court to maximize recovery for Earn users and any other parties within the bankruptcy court's jurisdiction.

With Genesis now seeking bankruptcy protection, Winklevoss said the company will become subject to “judicial oversight and be required to provide discovery into the machinations that brought us to this point.”

~ By Ibiam Wayas ~

DCG bankruptcy
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