đź“Ł Gemini Alleges DCG Failed To Pay $630M In Crypto Custody Dispute
Digital Currency Group (DCG) missed a $630 million payment owed to Gemini last week, triggering a series of events that have put the spotlight on the cryptocurrency industry. Gemini CEO Cameron Winklevoss has threatened to sue DCG CEO Barry Silbert and DCG over the repayment of a $900 million loan after Genesis, a DCG entity, filed for Chapter 11 bankruptcy, amid allegations of mixed funds and ongoing disputes about loan repayments. The U.S. Securities and Exchange Commission (SEC) has accused both firms of selling unregistered securities through their Earn program.
The situation has escalated quickly finding themselves in the spotlight. While Gemini and DCG are in discussions, if no deal is reached, Gemini and other parties are proposing an amended reorganization plan with Genesis that doesn’t require DCG’s approval, Gemini said in an update on its site. Although discussions are ongoing, it is unclear whether the parties will reach an agreement. If they do, consideration will be based in part on whether they believe DCG will engage in good faith negotiations on a consensual deal. Gemini co-founder Cameron Winklevoss has publicly accused DCG CEO Barry Silbert of engaging in “bad faith stall tactics,” which has further fuelled the controversy.
