Nouriel Roubini shared his views on the latest cryptocurrency ‘cat fight’ between Gemini and DCG. As Kriptokoin.com, we shared the accusations about crypto money platforms with you.
Cryptocurrency platform ponzi?
In a recent tweet, economist Nouriel Roubini stated that crypto exchange Gemini and venture firm Digital Currency Group (DCG) are “fraud Ponzi cesspools” in light of growing tensions between the two companies. Gemini’s Cameron Winklevoss accused businessman DCG’s Barry Silbert of “malicious distraction tactics” and mixing funds in his holding, claiming that the latter has left $900 million in client assets unnecessarily obscure since FTX’s collapse. Winklevoss claims that $1.675 billion DCG borrowed from Genesis is used for other business purposes and asks Silbert to commit to finding a solution for Gemini Earn customers.
Silbert said that DCG does not borrow from Genesis and that all outstanding debts are present. In addition, DCG submitted a proposal to settle the dispute on December 29. The latest crypto case highlights the complex web of connections between top firms in the crypto industry. Roubini described the dispute as “crypto girl fights between shady characters about shitty sh*tcoins.”
Reply from Silbert
Barry Silbert, founder and CEO of Digital Currency Group, responded to an open letter Wednesday by Cameron Winklevoss addressing DCG’s $1.675 billion in default debt. Silbert’s tweet focused on denying missed payments, ensuring that DCG did not miss any interest payments and that all outstanding loans were up to date and the next payment was in May 2023.
Silbert’s tweet was in response to a letter published by Winklevoss that sheds light on the growing concerns of 340,000 Earn users who have lent DCG a total of $900 million. The letter states that many of these people have invested their life savings and children’s college funds. After Genesis, a subsidiary of DCG, suspended its withdrawal in November, it became clear that Silbert’s so-called “malicious distraction tactics” took a severe toll on those affected, Winklevoss highlighted. Despite receiving multiple offers, Silbert has so far refused to work with Earn users to come up with an acceptable solution. Winklevoss views Silbert’s behavior as unacceptable and unscrupulous in light of how much people have entrusted to him. Gemini’s co-founder invites him to take responsibility for his own actions and asks him to commit to resolving this issue by January 8.