2025 Update: Gemini’s Winklevoss Accuses DCG of Fraud, Demands CEO Removal Amid $900M Crisis

Cameron Winklevoss, co-founder of the Gemini crypto exchange, has publicly accused Genesis Global Capital, a major crypto lender, of defrauding Gemini and over 340,000 of its customers. This allegation intensifies the ongoing fallout from the FTX collapse, which has sent shockwaves through the crypto market.

Key Highlights

• Gemini’s Cameron Winklevoss claims Genesis Global Capital defrauded more than 340,000 Gemini users.
• Winklevoss asserts that Genesis’s parent company, Digital Currency Group (DCG), failed to repay Gemini, leaving Gemini unable to fulfill customer withdrawals.
• Authorities are investigating DCG and its subsidiaries, although no formal accusations have been made yet.

FTX Collapse Sparks Financial Domino Effect

The November 2022 collapse of FTX severely impacted Genesis, which had approximately $175 million frozen in FTX accounts. As a result, Genesis suspended loan redemptions and new lending activities. Gemini, partnering with Genesis for its Earn product—a platform allowing users to earn yields by lending crypto assets—was forced to delay customer withdrawals.

The crisis deepened as Genesis approached bankruptcy, owing Gemini’s customers over $900 million, putting Gemini’s financial stability at risk.

Winklevoss Calls for DCG CEO Barry Silbert’s Removal

In an open letter, Winklevoss criticized Barry Silbert, CEO of DCG, labeling him 'unfit' to lead and demanding his removal. Winklevoss emphasized that without Silbert stepping down and resolving the outstanding debts, Gemini could not repay its customers. He set a one-week ultimatum for DCG to settle repayments before escalating the dispute.

Silbert responded that DCG had proposed a resolution to Genesis and Gemini advisors on December 29, 2022, but had yet to receive a response. He also stated that DCG has consistently met interest payments and remains current on all outstanding loans.

Increased Regulatory Scrutiny on DCG

Following the FTX collapse, DCG and its subsidiaries have come under intense regulatory examination. Genesis Global Trading halted withdrawals after revealing $175 million was locked in frozen FTX accounts. Prosecutors are investigating financial transfers between DCG and its crypto lending subsidiaries, alongside the transparency of communications with investors. No charges have been filed to date.

Summary

Genesis suffered significant losses due to the downfall of Three Arrows Capital and the FTX debacle, leading to suspended withdrawals and loan freezes. The ongoing investigations and financial instability highlight the fragile state of the crypto lending sector. DCG, which owns Foundry Digital (a mining service), the London-based exchange Luno, and the crypto news site CoinDesk, remains under pressure as the industry watches closely.

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