Cameron Winklevoss, Co-Founder of Gemini Trust Company, LLC has provided an update to the public on its earn program, stating that the company intends to sue Digital Capital Group (DCG) and its CEO, Barry Silbert for the $900 million owed to Gemini customers.
Cameron gave the update on its official Twitter page after Genesis announced that it was filing for bankruptcy protection in the United States after losing funds due to the collapse of the bankrupt FTX exchange and Three Arrows Capital.
In addition, he stated that Genesis’ bankruptcy filing does not absolve the firm, Barry Silbert, and any other individuals involved in the alleged fraud perpetuated in the Earn program from legal liability.
Cameron also stated that Gemini will only withdraw from a potential lawsuit if DCG and Silbert reverse their actions and make a fair deal with Gemini’s customers whose funds are stuck in the Earn program.
Additionally, the Co-Founder attempted to revive consumers’ hopes by pledging that the company is committed to pursuing all available measures in the bankruptcy court to reclaim its customers’ monies.
The Brawl Between Genesis and Gemini
The relationship between Gemini and Genesis began with Gemini being the main partner for Gemini Earn, a program offered by Gemini that allows users to earn interest on their deposited crypto assets.
The troubles between both companies then started when Genesis announced that it was temporarily suspending customers’ lending withdrawals after it lost a huge amount of funds (approximately $175 million) to the defunct FTX exchange after it collapsed. As a consequence, $900 million belonging to Gemini Earn users were locked up in Genesis.
At the time, Genesis said it has hired experienced advisors in the crypto industry to explore different solution measures and had to reduce its staff size by 30% due to its financial challenges and difficult market conditions.
After much deliberation and arguments between the CEOs of both companies, Gemini eventually announced that it was terminating its loan agreement with Genesis and the Earn program.