Some days ago, Gemini published a public letter to Barry Silbert founder of Digital Currency Group looking to find a way to resolve the Earn program issues.
The problems started when Genesis halted withdrawals which affected the Gemini Exchange Earn programme users. In the letter Cameron Winklevoss COO & Co-founder of Gemini accuses Barry Silbert of being directly responsible for the current situation. The Digital Currency Group, founded by the latter owes Genesis -its subsidiary- more than $1.6 billion, of which more than $900 million are money belonging to Earn users.
Gemini continues to accuse Silbert that he has been using stalling tactics for more than 6 weeks now, and gives an ultimatum with a deadline of January 8th for when outstanding differences need to be resolved.
Admittedly, Genesis took a big hit from both the 3AC and FTX collapses. After two months, its Interim CEO, Derar Islim, send a letter to its clients asking for more time, past the January 8th deadline, in order to resolve the complex financial situation.
Now, new updates have come to light that the Digital Currency Group / Genesis Trading are currently being investigated by the Securities Exchange Commission (SEC). This would make them the second Crypto Titan after FTX to fall under the SEC scrutiny. As per various sources on Twitter whistleblowers have come forward against DCG. This could be linked to the FTX investigation as SEC is trying to unravel the thread that links SBF/FTX with other actors looking at how they are all interconnected.
Is the purported DCG /Genesis investigation part of the FTX case? This could be the case, as Su Zhu, the disgraced co-founder of 3AC who moved to Dubai to evade the authorities, publicly accused FTX / Genesis for the Luna attack and also claimed FTX returned a $2.5 billion loan to Genesis while the latter likely knew the money came from depositors funds.
On another note, former Secretary of US Treasury, Larry Summers gave up his role as a senior advisor to DCG scrubbing his involvement of the last 6 years with the firm, as noted by Protos.
There's still a lot of things we don't know and we should expect to learn more after the January 8th deadline has passed. Gemini warned that if the issue is not resolved more shots will be fired.
(Images from genesistrading.com & dcg.co under fair use. Dividers courtesy of @brando28)
If you enjoyed this article consider liking & subscribing. Your support matters!
