DCG Faces Ultimatum, Federal Probe
NEW YORK – The ongoing dispute between Cameron Winkelvoss, co-founder of the cryptocurrency trading platform Gemini, and Barry Silbert, CEO of Digital Currency Group (DCG), has heated up once again. The rift began in November 2022 when Gemini accused DCG of owing them $900 million from a prior lending deal to assist DCG’s subsidiary, Genesis.
DCG was allowed to purchase an undisclosed amount of tokens from Gemini’s lending platform, Earn, while simultaneously providing resources and services to the firm. Gemini claims that DCG failed to meet its obligations and must pay back the loan.
Gemini co-founder Cameron Winkelvoss tweeted an open letter he wrote to Silbert, giving him an ultimatum date of January 8 to produce the repayment or else face a lawsuit.
Since then, the Department of Justice’s Eastern District of New York and the SEC have launched an investigation into DCG for potentially questionable internal transfers. While the exact details of this investigation remain unclear, it has been reported that officials are looking into whether or not Silbert and his firm engaged in fraudulent activity when dealing with cryptocurrency exchanges.
