Tyler and Cameron Winklevoss Reportedly Withdrew $280 Million from Genesis Global
According to reports, Tyler and Cameron Winklevoss, owners of the Gemini exchange, withdrew around $280 million from Genesis Global a few months before the crypto lender froze customer deposits and filed for bankruptcy. Both Genesis and Gemini had partnered to offer an “Earn” program that allowed customers to earn interest on their cryptocurrency holdings. Through this program, users of Gemini could lend their digital assets through Genesis. In August 2022, Gemini made a substantial withdrawal of cryptocurrency funds from Genesis to establish a reserve for the Gemini Earn program participants.
Withdrawal Made for Establishing a Reserve for Gemini Earn Users
The funds withdrawn from Genesis were intended to create a reserve that would facilitate immediate redemptions for participants in the Gemini Earn program. It is worth noting that none of this money was directed towards the Winklevoss twins, the founders of Gemini. Currently, neither Genesis nor Gemini has provided any comments regarding this matter.
Gemini Sues Genesis for $1.1 Billion Owed to Earn Users
In January of this year, Genesis Global filed for Chapter 11 bankruptcy protection in New York. As a result, Gemini filed a claim in the bankruptcy court seeking $1.1 billion on behalf of its Earn program users. In the months following the initial withdrawal freeze, settlement negotiations took place between Gemini, Genesis, and Digital Currency Group (DCG), the parent company of Genesis. These negotiations sometimes turned public with disputes involving Barry Silbert, founder of DCG, and the Winklevoss twins.
A tentative agreement was reached in February but was never finalized. Mediated negotiations that followed failed to produce a mutually agreeable settlement, leading Gemini to sue DCG for fraud in July. Gemini claimed that it had attempted to terminate the Earn program in October 2022 and had a face-to-face meeting with Silbert, who aimed to address concerns about insolvency. DCG dismissed the lawsuit as a “publicity stunt” and denied any wrongdoing.
Adding to the complexity, Genesis sued DCG in September for over $620 million in unpaid loans. Both Genesis and Gemini also faced charges from the U.S. Securities and Exchange Commission in January, alleging that the Earn program constituted an unregistered sale of securities.
Hot Take: Winklevoss Twins’ Withdrawal Raises Questions Amidst Genesis Collapse
The recent revelation of Tyler and Cameron Winklevoss withdrawing $280 million from Genesis Global just before its collapse has raised eyebrows. While the funds were intended to establish a reserve for Gemini Earn users, questions arise about the timing and potential impact on other customers. The ongoing legal battles between Gemini, Genesis, and DCG further complicate the situation. As the crypto market continues to face regulatory scrutiny, this incident highlights the importance of transparency and trustworthiness within the industry.
By
By
By
By