CryptoForDay

Your daily dose of crypto news

Gemini’s Potential Juggernaut Partnership with Genesis Goes Up in Smoke

2 min read
4f97fad50f3a27d40fecd33eabbe4413 CryptoForDay

Gemini's Potential Juggernaut Partnership with Genesis Goes Up in Smoke

Gemini co-founder Cameron Winklevoss and Digital Currency Group (DCG) were once considering a merger with DCG’s cryptocurrency lending firm, Genesis Global Capital (GGC). This merger had the potential to create a powerful competitor to platforms like Coinbase and FTX. DCG CEO Barry Silbert mentioned this merger idea in an email to colleagues in October 2022, just three months before Genesis went bankrupt. The email was shared as part of a motion to dismiss a $3 billion fraud lawsuit filed by the Attorney General of the State of New York against DCG and Silbert.

The email was used to refute allegations that Silbert knew about Genesis’ financial troubles and wanted to hide them from others. In the email, Silbert expressed his interest in a closer partnership between Genesis, Gemini, and DCG, including the possibility of merging the companies. He believed that such a merger would excite investors and could potentially raise $1 billion, leading to a public listing within two years. Silbert pitched the idea to Winklevoss, highlighting the potential for Gemini to become the largest cryptocurrency custody provider worldwide and compete with Coinbase and FTX.

At the time of the lunch meeting, Genesis and Gemini were already closely connected through a cross-platform lending partnership that had been ongoing for 18 months. GGC was facing significant losses due to its exposure to now-collapsed Three Arrows Capital. Silbert was honest with Winklevoss about GGC’s financial difficulties, which Winklevoss apparently took well. Silbert emphasized the importance of avoiding a bank run and urged Genesis to prevent any potential bankruptcy that could hinder DCG’s ability to raise funds.

After the meeting, Winklevoss was expected to discuss the merger idea with his twin brother, Tyler Winklevoss, and provide feedback on how to proceed. The merger did not happen. In February 2021, Gemini launched its “Earn” program, allowing customers to lend their coins to GGC in exchange for interest payments. Unfortunately, one month after the aforementioned email, GGC suspended withdrawals due to market instability caused by FTX’s collapse. GGC eventually filed for bankruptcy in January 2023, leaving Gemini’s Earn program customers owed $1.2 billion.

Since then, Cameron Winklevoss has threatened legal action against Silbert multiple times and accused him of fraudulent behavior and cultivating a culture of deceit and lies.

8 thoughts on “Gemini’s Potential Juggernaut Partnership with Genesis Goes Up in Smoke

  1. It’s infuriating how easily people like Silbert can get away with deceitful actions in this industry.

  2. The collapse of GGC has caused so much instability and loss in the market. This could have been avoided!

  3. It’s unfortunate to see the impact on customers and their owed funds. Hopefully, this situation will be resolved fairly.

  4. The collapse of FTX had a domino effect on GGC and other platforms. It’s a tough situation for everyone involved. 😔🎢

  5. It’s clear that Silbert prioritized his own interests over the well-being of investors. Disgusting.

  6. Winklevoss trusted Silbert with their partnership, and he betrayed them. Lawsuit is the right way to go!

  7. It’s disheartening to see customers owed such a substantial amount. Hopefully, they will find a resolution soon.

  8. It’s clear that Cameron Winklevoss feels betrayed, and it’s essential for the truth to come out in these allegations.

Leave a Reply

Copyright © All rights reserved.