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Winklevoss said this move will afford the firm to recoup its funds as the Barry Silbert-led DCG has continued to refuse to offer its creditors a fair deal.
Cameron Winklevoss, the co-founder and Chief Executive Officer (CEO) of the Gemini trading platform has threatened to sue Genesis Global and its parent company, the Digital Currency Group. Cameron took to Twitter to share the update following the bankruptcy filing lodged by Genesis involving two of its other subsidiaries.
Cameron has been very vocal on social media about the complacency of Genesis and the Digital Currency Group, owned by Barry Silbert with regard to settling Gemini Earn customers. On more than one occasion, Cameron, who co-owns the Gemini exchange with his twin, Tyler Winklevoss has claimed Silbert and Genesis are using stall tactics to avoid paying the $900 million owed to its Earn customers.
The Gemini Earn program pays out a reward to users who subscribe to the product. Unfortunately, the Earn customers could not gain access to their funds as Genesis closed withdrawals following the implosion of the FTX Derivatives Exchange back in November last year. With the gloominess surrounding the future of the product, Gemini has closed its Earn program to all clients.
According to Cameron, the bankruptcy filing has been tagged a good one for Gemini Earn customers. He said this move will afford the firm to recoup its funds as the Barry Silbert-led DCG has continued to refuse to offer its creditors a fair deal.
“The good news is that, by seeking the protection of the bankruptcy court, Genesis will be subject to judicial oversight and be required to provide discovery into the machinations that brought us to this point,” Cameron said in the tweet, adding that “the decision to put Genesis into bankruptcy does not insulate Barry, DCG, and any other wrongdoers from accountability.”
Lawsuit against Genesis Inevitable, Cameron Insists
The Gemini executive said despite the chances it has to recoup its Earn funds via the bankruptcy proceedings, he will still not hesitate to sue all parties involved if Silbert and DCG do not “come to their senses and make a fair offer to creditors.”
While the lawsuit option is very much on the table, Cameron said the firm will use every tool available in its power in the bankruptcy court to “maximize recovery for Earn users and any other parties within the bankruptcy court’s jurisdiction.”
As reported earlier by Coinspeaker, Genesis Global said its credit and liabilities are within the $1 billion and $10 billion range and that it has as many as 100,000 creditors. Of the funds, $900 million belongs to more than 340,000 Gemini Earn customers, making the situation one of great concern for the crypto trading platform.
The bankruptcy filing of Genesis itself is a function of the aftermath of the implosion of the FTX Derivatives Exchange. While the deep contagion may still have more firms it will impact, Cameron maintained that DCG and Barry Silbert also have serious explanations to give besides the repayment that creditors expect.