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Gemini co-founder threatens lawsuit against DCG, Barry Silbert

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Gemini co-founder threatens lawsuit against DCG, Barry Silbert

Gemini co-founder threatens lawsuit against DCG, Barry Silbert Oluwapelumi Adejumo · 2 hours ago · 1 min read

Cameron Winklevoss argued that Genesis’ bankruptcy does not insulate Barry Silbert or DCG from accountability.

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Updated: January 20, 2023 at 8:41 am

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Cover art/illustration via CryptoSlate

Gemini co-founder Cameron Winklevoss threatened a lawsuit against crypto conglomerate Digital Currency Group (DCG) and its CEO Barry Silbert if they failed to make a “fair offer” to creditors like Gemini Earn users.

Gemini is prepared 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,” according to Winklevoss’ Jan. 20 Twitter thread.

Genesis’ bankruptcy, a crucial step

Winklevoss said Genesis’ bankruptcy was crucial to recovering Earn users’ assets. He added that the bankruptcy would subject the firm to a judicial oversight that would force it to reveal “machinations that brought us to this point.”

However, he argued that Genesis’ bankruptcy does not insulate Silbert or DCG. Winklevoss added:

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“We also believe that — in addition to owing creditors all of their money back — Genesis, DCG, and Barry owes them an explanation. Bankruptcy court provides a much-needed forum for that to happen. Sunlight is the best disinfectant.”

Winklevoss and Silbert have been engaged in a public dispute over the $900 million owed by Genesis to Gemini Earn. The exchange co-founder accused Silbert of employing “bad faith stall tactics” and called for Silbert to be sacked.

Meanwhile, Genesis disputed the claim that it owes Gemini customers $900 million — court filing showing that the debt to Gemini Earn customers stands at $765.9 million.

The U.S. Securities and Exchange Commission (SEC) charged both firms with selling unregistered securities offerings on Jan. 12.

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Bankruptcy

3AC liquidators files against Kyle Davies for ignoring Subpoena order

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3AC liquidators files against Kyle Davies for ignoring Subpoena order

3AC liquidators files against Kyle Davies for ignoring Subpoena order Christian Nwobodo · 8 hours ago · 1 min read

Davis failed to comply with the subpoena order despite maintaining an active presence on Twitter and attempting to raise $25 million for GTX.

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Updated: February 8, 2023 at 5:26 pm

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Three Arrows Capital (3AC) liquidators alleged that 3AC co-founder  Kyle Davis has openly ignored the court’s subpoena order, however, a motion was filed to extend the deadline till March 16.

3AC liquidators had filed a subpoena against Davis openly via Twitter on Jan. 5. The court order mandated the 3AC co-founder to provide all documents that revealed all financial information about his bankrupt hedge fund before Jan. 26.

3AC liquidators said in a Jan. 7 court filing that Davis has intentionally refused to comply with the order despite maintaining an active presence on Twitter.

“He (Davis) is, without question, aware of the Subpoena-having been tagged in 41 replies and 64 retweets-and has, once again, chosen to ignore his duties to Three Arrows.”

In addition, Davis and his alley Shu Zhu were reportedly involved in a $25 million fundraising effort for their new crypto exchange-GTX.

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Consequently, the 3AC liquidators have asked the US bankruptcy court to extend the subpoena deadline till March 16, to enable Davis fully turn in all required documents of the bankrupt hedge fund.

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Bankruptcy

DCG sells $22M worth of Grayscale shares to raise funds

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DCG sells $22M worth of Grayscale shares to raise funds

DCG sells $22M worth of Grayscale shares to raise funds Christian Nwobodo · 2 hours ago · 1 min read

DCG sold some of its Grayscale Ethereum shares at $8 per share — raising approximately $22 million, according to the Financial Times.

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Updated: February 7, 2023 at 7:48 am

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Leading asset management firm Digital Currency Group (DCG) has reportedly sold some of its shares in Grayscale crypto trusts — raising roughly $22 million, according to the Financial Times (FT).

DCG has been caught up in a series of financial crises following the bankruptcy of its trading arm-Genesis. The firm reportedly owes over $3 billion to its creditors, including about $900 million to Gemini Earn users.

DCG set to continue offloading assets

To raise more funds to support its bankrupt subsidiary, DCG has reportedly moved to sell some assets in its $500 million portfolio — including its news outlet CoinDesk.

DCG has also submitted filings to the US Securities and Exchange Commission (SEC), revealing its deals to sell some of its shares in Grayscale, FT reported on Feb. 7.

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DCG started selling its shares in Grayscale on Jan. 24, with a focus on the Ethereum Fund, according to the report. DCG sold the Grayscale Ethereum shares at $8 per share — raising approximately $22 million. The share price has declined by over 50% from its initial claim of $16 per ETH.

DCG also sold some smaller shares in its Litecoin Trust, Bitcoin Cash Trust, Ethereum Classic Trust, and Digital Large Cap Fund.

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Bankruptcy

Gemini comes to agreement with Genesis as Cameron Winklevoss declares $100M contribution

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Gemini comes to agreement with Genesis as Cameron Winklevoss declares $100M contribution

Gemini comes to agreement with Genesis as Cameron Winklevoss declares $100M contribution Liam ‘Akiba’ Wright · 11 hours ago · 1 min read

Gemini co-founder Cameron Winklevoss confirmed Earn customers have taken a “critical step forward.”

1 min read

Updated: February 6, 2023 at 11:13 pm

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Cameron Winklevoss, the Co-Founder of Gemini, announced that the company has come to an “agreement in principle” with Genesis late on Feb. 6.

Gemini has made several strong claims against Genesis on behalf of Gemini Earn customers, arguing that Genesis owed customers over $1 billion.

Investors were feared to be at risk of losing $485 million through Genesis’ bankruptcy procedures. However, Cameron confirmed that a “plan that provides a path for Earn users to recover their assets” had been agreed upon in court.

Winklevoss also disclosed that Gemini would contribute $100 million as a part of the plan.

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“This plan is a critical step forward towards a substantial recovery of assets for all Genesis creditors.

Gemini will be contributing up to $100 million more for Earn users as part of the plan, further demonstrating Gemini’s continued commitment to helping Earn users achieve a full recovery.”

The Gemini Co-Founder stated that while there is “still much work to be done,” he is confident the issue is moving in the right direction.

 “We are confident that we now have a framework in place to execute on.”

No information has yet been revealed as to whether Earn customers will receive funds on a 1:1 basis or at a discounted rate. However, Reuters confirmed that “Digital Currency Group… reached an agreement in principle on a restructuring plan with a group of creditors,” citing DCG subsidiary CoinDesk. Cameron’s announcement, therefore, aligns with the news released by DCG.

Future updates on the Gemini Earn fund recovery status can be found on the Gemini website.

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