Gemini co-founder lashes out at DCG co-founder: “Owe money and act like a big shot?” If you continue to delay payment, we will use legal weapons.

You have not apologized for the stress, anxiety, and pain you have caused to them and their families. You have not apologized for the disruption you have caused to our entire industry. However, you did tell everyone that “the past year has been the most difficult year of my life.”

At first glance, your letter seems like a masterclass in lack of self-awareness. After all, it’s a little strange to write a letter but not address the allegations that prompted you to write it. However, upon further inspection, your letter is another carefully crafted act of stupidity, designed solely to shift blame, buy time by pretending to be clueless, and attempt to screw over creditors and Earn users again. Allow me to explain.

One thing has become abundantly clear after nearly 8 months of communicating with you, your lawyers, and your advisors. You never intended to do the right thing and take responsibility for the chaos your recklessness and fraud caused you, your company, and your employees.

Instead, you spent the past 8 months trying to buy time so you could raise funds and screw over creditors and Earn users once again. Let me break down your own game for you.

Committing fraud. In June and July 2022, you, DCG, and Genesis intentionally lied to creditors, Earn users, and Gemini to make us all believe that DCG had absorbed the $1.2 billion loss caused by the collapse of 3 Arrows Capital (3AC) two months earlier in May.

In reality, DCG did not absorb these losses but instead signed a fake long-term note that made it look like it did, without sending a penny to Genesis. The transaction was not made in good faith. You hoped no one would notice, but unfortunately, someone named SBF showed up and committed a bigger fraud, exposing your fraud.

Refusing to repay the note. At this point, the right thing to do would have been for you and DCG to actually absorb the $1.2 billion loss, or to work out an agreement with creditors to restructure the note’s terms and amounts in a legal, fair, and reasonable way for everyone. You chose to do neither. Instead, you pretended to go through a negotiation process in an effort to suck in dumb creditors and make DCG litigate the feasibility of the note in court for many years to come.

Raise funds to repay $630 million in loans. Delay is crucial as it gives you time to solve the obstacle – DCG owes Genesis $630 million. This loan is the Damocles sword hanging over you. Unlike FuGazi tickets, which will not expire until 10 years later, this loan is due in May of this year. If you cannot repay this loan, DCG will default and go bankrupt.

Therefore, since November, you have been working feverishly not to compensate the creditors, but to raise funds so that you can repay this loan and litigate the ticket freely and clearly in the next ten years. You have not given up and will push for a better deal no matter what. For you, Earn users are not people, they are numbers on spreadsheets, and business goes on, brother.

Abusing the mediation process. Come May 1st, DCG has no $630 million and is about to fall off a cliff. Faced with your second default and second bankruptcy in less than six months, you seek to buy time through mediation, which the creditors reluctantly agree to give you one last chance.

Mediation can be a very effective mechanism, as long as they are operated properly, with clear structure, strict deadlines, and real consequences.

After 8 weeks, and after several extensions, no agreement has been reached. Why? Because mediation gave DCG an indefinite deferral to pay its $630 million debt to Genesis, and it was free. This gratuitous deferral seriously harms creditors and Earn users in two very important ways.

First, it denies creditors, including Earn users, the $630 million that was due to them in May. Second, it completely undermines the key bargaining chip of creditors and Earn users, which is to bring you to the negotiating table, make compensation for the forged acceptance bills, and avoid protracted scorched-earth litigation for this purpose.

The game is over, I’m writing to let you know that your game is over.

In addition to delaying the solution, the related costs exceed $100 million, all of which were given to lawyers and consultants, sacrificing the interests of creditors and earners, which is enough.

Therefore, we attached a best and final proposal, which is fair and reasonable for everyone, and represents the minimum that the creditors asked to support the transaction will accept.

If you do not agree to this deal before 4 pm Eastern Time on July 6, we will take the following steps:

File a lawsuit against DCG and you personally: The lawsuit will be filed on July 7th. Among other things, it will outline your personal responsibility for concealing Genesis bankruptcy and provide a blueprint for similar lawsuits against you and DCG by 232,000 Earn users.

Propose a turnover motion: We will ask the Genesis Special Committee to fulfill its fiduciary duty and submit a turnover motion by July 7th or earlier, placing DCG in default and demanding immediate payment of the $630 million owed to creditors and Earn users, with no further delay.

Push forward with non-consensual plan: We will work with the Genesis Special Committee to advance a non-negotiated plan that adheres to a strict timetable and provides for immediate distribution to creditors and Earn users, with DCG’s contributions being sued for.

UCC Lawsuit: We will request that the Unsecured Creditors Committee (UCC) fulfill its fiduciary duty and file a lawsuit to investigate and collect evidence of the various intercompany loans and transactions between DCG and Genesis entities.

Gemini looks forward to working with the Genesis Special Committee to end the mediation process, advance the bankruptcy process, and provide relief to Earn users as soon as possible.

Finally, over the past nine months, I have seen a lot of bad behavior from you and your colleagues, but the most disturbing thing is what you said to me this fall: You are the victim of all of this.

This takes a special kind of “person” to owe $3.3 billion to tens of thousands of people and believe, or at least pretend to believe, that they are the victim, and not even an SB has the delusion to do so. Finally, he at least recognizes how his behavior has hurt others and tries to make things right. I can confidently say on behalf of all Earn users that it’s time for you to do the right thing.

Cameron Winklevoss.

Like what you're reading? Subscribe to our top stories.

We will continue to update Gambling Chain; if you have any questions or suggestions, please contact us!

Follow us on Twitter, Facebook, YouTube, and TikTok.


Was this article helpful?

93 out of 132 found this helpful

Gambling Chain Logo
Digital Asset Investment
Real world, Metaverse and Network.
Build Daos that bring Decentralized finance to more and more persons Who love Web3.
Website and other Media Daos

Products used

GC Wallet

Send targeted currencies to the right people at the right time.