Genesis in Chapter 11 Won’t Insulate Silbert, Winklevoss Says

Cameron Wiklevoss threatens to sue Barry Silbert, DCG and others, following Genesis bankruptcy


Blockworks exclusive art by Axel Rangel modified by Blockworks


Gemini co-founder Cameron Winklevoss on Friday threatened to sue Digital Currency Group and its CEO Barry Silbert for their supposed role in harming Gemini’s customers, following a Genesis bankruptcy filing.

In a Twitter thread, Winklevoss highlighted Genesis’ move to file for Chapter 11, calling it a “crucial step” for Gemini being able to recover customer assets. Silbert and DCG continue to “refuse to offer creditors a fair deal,” he added.

Loading Tweet..

Genesis was reportedly looking to raise fresh capital and avoid bankruptcy, but the firm and its subsidiaries officially filed for bankruptcy protection late Thursday. 

Genesis Global, Gemini’s partner for its recently-terminated Earn program, listed more than 100,000 creditors. Both assets and liabilities were given a rough estimate of between $1 billion to $10 billion.

Among the questions that remain unanswered is whether the $1.1 billion promissory note from DCG to Genesis is callable in bankruptcy. Prior to the Chapter 11 filing, Silbert told shareholders in a Jan. 10 letter that the note was not callable, but he did not specify whether Genesis’ bankruptcy would change that.

DCG and Genesis didn’t return Blockworks’ request for comment by press time.

Earlier this month, Winklevoss accused Silbert of “bad faith stall tactics” and claimed the CEO was yet to repay $900 million lent to its digital asset prime brokerage arm Genesis. 

Winklevoss’ Gemini offered a product called “Earn” that allowed rewards of up to 8% to customers who lent out their cryptoassets to Genesis. But the product was inaccessible after Genesis halted customer withdrawals in November after the unraveling of FTX, where it had $175 million in locked assets.

Winklevoss later published an open letter calling on DCG’s board to remove Silbert as CEO. Silbert, meanwhile, has denied that DCG owes Genesis as much as $900 million and claims that DCG is up-to-date on any loan repayment. 

Winklevoss further added that Genesis’ decision to seek bankruptcy protection “does not insulate Barry, DCG, and other wrongdoers from accountability.”

“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,” he added.

He had previously given Silbert a Jan. 8 deadline to commit to finding a resolution, but it appears that there was no response to this timeline.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg


Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.


Digital asset firms face potential new regulatory landscape under Treasury’s proposed authority expansion


Uniswap Labs will be providing trading APIs to Talos investors through Fireblocks


DYDX supply will climb by up to 80% after the Friday unlock, but a couple factors make a massive sell-off appear unlikely


Switzerland-based Pando Asset, which has crypto products trading on the SIX Swiss Exchange, now looks to the US


Binance does not hold the required licenses to advertise and serve customers in the Philippines, the country’s securities regulator said


The largest bitcoin futures ETF’s asset base has jumped by nearly $700 million since mid-October