Cameron Winklevoss, the founder and CEO of the Gemini trading platform has issued a legal threat against Genesis Global and the Digital Currency Group, which is Genesis Global's parent business. After the announcement that Genesis had filed for bankruptcy involved in two of its other companies, Cameron shared the latest information (1) with his followers on Twitter.
Regarding settling Gemini Earn users' accounts, Cameron has been quite vocal on social media regarding the carelessness of Genesis and the Digital Currency Group, which Barry Silbert owns.
Cameron Winklevoss, who founded the Gemini exchange with his twin brother, Tyler Winklevoss, has asserted on multiple occasions that Silbert and Genesis are engaging in delay tactics to avoid paying the $900 million owed to its Earn clients. Tyler Winklevoss is Cameron's twin brother.
Users who subscribe to the Gemini product are eligible for a reward through the Gemini Earn program. Unfortunately, Earn's clients could not retrieve their cash since Genesis had stopped processing withdrawals when the FTX Derivatives Exchange collapsed in November of the previous year.
Gemini has decided to stop offering its Earn program to any of its customers because of the uncertain outlook for the product's future.
Cameron claims that the bankruptcy filing has indeed been hailed as a positive development for the clients of Gemini Earn. He stated that this approach would allow the company to collect its cash even though the DCG, which Barry Silbert runs, has failed to make a fair settlement to its creditors.
Cameron stated in the tweet that, by pursuing the safeguards of the bankruptcy court, Genesis will be subjected to judicial supervision and be needed to even provide discovery into reasons for failure.
Cameron said that "the decision to place Genesis into bankruptcy doesn't shield Barry, DCG, and any other malefactors from accountability."
The Suit is Happengin per Cameroon
Although there is a possibility that Gemini will be able to recoup its Earn funds through the bankruptcy proceedings, the executive for Gemini stated that he will not be reluctant to sue all persons involved if Silbert and DCG do not "come to their senses and make an honest proposal to creditors."
Cameron stated that the company will use every tool at its disposal in the bankruptcy court to "maximize retrieval for Earn consumers and all other stakeholders within the bankruptcy court's jurisdiction." This statement was made even though the option to file a lawsuit is still very much on the table.
Genesis Global has stated that its assets and liabilities range between $1 billion and $10 billion and that it has up to 100,000 customers who are creditors. Because more than 340,000 clients of Gemini Earn are the owners of $900 million of the assets, the scenario presents a significant source of concern for the crypto currency trading platform.
The effect of the collapse of the FTX Derivatives Exchange has directly contributed to Genesis's decision to file for bankruptcy protection. Cameron reiterated that DCG and Barry Silbert have important answers to offer in addition to the reimbursement that creditors anticipate receiving, notwithstanding the possibility that the deep contagion would still have further companies that it will damage.