Gemini, the cryptocurrency exchange helmed by the Winklevoss twins, is planning to sue Digital Currency Group (DCG) and its CEO Barry Silbert unless they offer a plan for repaying the $900 million loan Gemini made to the now-bankrupt Genesis Trading.
“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,” Gemini co-founder and president Cameron Winklevoss tweeted soon after the news of Genesis’ bankruptcy broke.
Describing Genesis’ bankruptcy filing as “a crucial step” towards recovering the loan as the firm “will be subject to judicial oversight and be required to provide discovery into the machinations that brought us to this point,” Winklevoss also stressed that “the decision to put Genesis into bankruptcy does not insulate Barry, DCG, and any other wrongdoers from accountability.”
6/ 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.
— Cameron Winklevoss (@cameron) January 20, 2023
Genesis, a subsidiary of DCG, was the industry’s first firm to launch an over-the-counter Bitcoin trading desk in 2013 but filed for bankruptcy protection late Thursday after suffering losses from the collapses of FTX and hedge fund Three Arrows Capital (3AC).
Last summer, Genesis was named the biggest creditor to 3AC, passing the Singapore-based firm $2.36 billion in an under-collateralized loan.
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Source: https://decrypt.co/119641/winklevoss-mulls-lawsuit-against-barry-silbert-digital-currency-group
