Cameron Winklevoss, the CEO of Gemini Earn, has threatened to sue the Digital Currency Group (DCG) following the bankruptcy filing of its subsidiary, Genesis. Winklevoss claims that Barry Silbert, the founder of DCG, has refused to offer creditors a fair deal. “We have been preparing to take direct legal action against Barry, DCG, and others who share responsibility for the fraud that has caused harm to the 340,000+ Earn users and others duped by Genesis and its accomplices,” Winklevoss said.
He went on to add that unless Silbert and DCG come to a fair agreement, a lawsuit will be filed “imminently.” This is not the first time that Winklevoss has accused Genesis, DCG, and Silbert of fraud. Previously, he claimed that they had put down a $1 billion promissory note from DCG to Genesis as a current asset.
In response, Silbert has maintained that DCG effectively assumed Genesis’s risk of loss on the Three Arrows Capital loan. Despite this, Genesis has a shortfall of approximately $2 billion and filed for Chapter 11 bankruptcy in the Southern District of New York. Creditors are expected to recover only a small percentage of the assets, and any lawsuit against Silbert and DCG could take several years to reach a conclusion.