Winklevoss twins announced that Gemini had "reached an agreement in principle" with Genesis Global Capital, DCG, "and other creditors on a plan that provides a path for Earn to recover their assets."
In legally ambiguous and vague language, Gemini repeatedly told its customers that funds were FDIC-insured, giving them false hope that their money was safe.
Sign traders' expectations proved true as Genesis Global Capital LLC's parent company officially filed for Chapter 11 bankruptcy following a tumultuous year for the 'crypto' house of cards.
Genesis Global is on the brink of filing for bankruptcy this week after being caught off guard by the 3AC collapse last year, but sources said talks are ongoing and plans could change.
The U.S. securities regulator has formally charged Genesis Global Capital LLC and Gemini Trust Company LLC for the unregistered offer and sale of securities in connection with the Gemini Earn digital asset lending program.
Cameron Winklevoss says some 340,000 Gemini Earn users have been “defrauded” by DCG subsidiary Genesis Global Capital and, by extension, by Silbert “and other key personnel.”
Barry Silbert hits back with Cameron Winklevoss' accusation, saying DCG never borrowed funds from Genesis and has delivered a proposal to solve the liquidity issues at both firms.
Gemini was among the many digital asset companies offering Earn accounts but with the contagion hitting its business partner Genesis, it suspended the accounts.
Senator Pat Toomey’s Stablecoin TRUST Act of 2022 bill and any laws based on it would reward issuers that play by the rules and push the likes of Tether out of the U.S. market.
Recently, users saw a precipitous drop in the value of multiple alt-coins, including many associated with companies in which DCG had invested.
Digital Currency Group boss Barry Silbert has issued a note to shareholders, noting the “difficult industry conditions” plaguing the digital asset sector.