Original Translation: Deep Tide TechFlow

On July 4th, Cameron Winklevoss, co-founder of Gemini, published an open letter to the founder and CEO of DCG, Barry Silbert, accusing him of continuously delaying the repayment of $1.2 billion owed to 230,000 Earn users. Winklevoss expressed his frustration with Barry's attitude, accusing him of constantly stalling and abusing the arbitration process in order to deceive the creditors. Furthermore, Barry shamelessly claimed to be the victim. Winklevoss issued a final ultimatum, stating that if the demands are not met, a lawsuit will be filed against DCG and Barry personally on July 7th.

Below is the full text of the open letter to Barry Silbert:

Barry, today marks the 229th day since Genesis stopped withdrawals, and it has been 174 days since my last open letter to you. As a reminder, I am writing this letter on behalf of 232,000 Earn users who have over $1.2 billion trapped in Genesis, a company owned and controlled by Digital Currency Group (DCG), which you own and control.

As you are well aware, DCG has engaged in fraudulent activities. As its leader, you have fostered and designed a culture of lies and deception, many of which have been well-documented in the public record.

It is shocking that when I provided detailed evidence of you, your employees, and DCG conspiring to deceive creditors with various false and misleading statements, including fabricating balance sheets and other documents to cover up Genesis's insolvency and financial condition, you did not directly address or refute any of it.

You did not explain any errors on my part or possible misunderstandings, but instead completely avoided the issue and responded in the most elusive way possible, writing a letter to your shareholders that completely disregarded and self-aggrandized.

On January 10th, you wrote a letter to shareholders (some of whom are also creditors you deceived), explaining how your feelings were hurt.

Your first complete idea in your nearly 4000-word letter, "I have recently done a lot of reflection on the past year..." is a good start. However, despite a hopeful beginning and all the self-proclaimed reflection, you somehow forgot to address the elephant in the room – DCG owes creditors 3.3 billion dollars (including 1.2 billion dollars owed to Earn users).

You have not apologized for the pressure, anxiety, and pain you have caused them and their families. Nor have you apologized for the damage you have caused to our entire industry. Yet, you do tell everyone that "the past year has been the most difficult year of my life."

At first glance, your letter seems like a masterclass in lack of self-awareness. After all, you write a letter without addressing the very accusations that prompted you to write it, which is a bit strange. However, upon further examination, your letter is yet another carefully crafted act of foolishness, designed solely to shirk responsibility, buy time through feigned ignorance, and attempt to deceive creditors and Earn users once again. Allow me to explain.

After nearly 8 months of communication with you, your lawyers, and your advisers, one thing has become abundantly clear. You never had any intention of doing the right thing, taking responsibility for the chaos caused by your recklessness and fraudulent actions, for yourselves, your company, and your employees.

Instead, you have spent the past 8 months focused on buying time so that you can raise funds and once again stonewall creditors and Earn users. Let me break down your own game for you.

Engaging in fraud. In June and July 2022, you, DCG, and Genesis intentionally lied to creditors, Earn users, and Gemini, making us all believe that DCG had absorbed the 12 billion dollars in losses incurred two months earlier in May due to the collapse of Three Arrows Capital (3AC).

In reality, DCG did not absorb these losses but instead signed a false long-term promissory note to make it appear that they did, without sending a single penny to Genesis. This transaction was not made in good faith. You hoped that no one would notice, but unfortunately, someone named SBF appeared, committing an even greater deception, exposing your scheme.

Refusing to repay the term tickets. At this point, the correct course of action would be for you and DCG to absorb the $1.2 billion loss or come to an agreement with the creditors to restructure the term and quantity of the holiday tickets in a manner that is legal, fair, and reasonable for everyone. You have chosen to do neither. Instead, you pretend to have gone through a negotiation process to try to placate the idiotic creditors and subject DCG to years of litigation over the feasibility of the tickets in court.

Raise funds to repay the $630 million loan. The delay is essential because it gives you time to address the hindrance - the $630 million that DCG owes to Genesis. This loan is the sword of Damocles hanging over your head, unlike the FuGazi tickets that are due in 10 years. This loan is due in May of this year, and failure to pay it will result in DCG defaulting and bankruptcy.

Therefore, since November, you have been working fervently not to compensate the creditors but to raise funds so that you can repay this loan and litigate the tickets freely and clearly over the next decade. You have not given up and are pushing for a better deal regardless. To you, Earn users are not people; they are numbers on a spreadsheet, and business continues as usual, brother.

Abusing the mediation process. On May 1st, with DCG not having the $630 million, it is on the brink of collapse. Facing your second default and second bankruptcy in less than six months, you seek to buy time through mediation, and the creditors reluctantly agree to give you one last chance.

Mediation can be an effective mechanism, as long as they operate properly, with clear structure, strict deadlines, and real consequences.

After 8 weeks and multiple extensions, no agreement has been reached. Why? Because mediation gave DCG an indefinite suspension of payment for the $630 million owed to Genesis, and it was free. This gratuitous suspension of payment severely harms the creditors, including Earn users, in two very important ways.

First, it denies the creditors, including Earn users, the $630 million owed to them in May. Second, it completely ruins the key bargaining chip of the creditors and Earn users, which is to have you come to the negotiation table and compensate for the forged acceptance bills, avoiding protracted scorched-earth litigation for it.

The game is over, and I am writing to inform you that your game is over.

Aside from the cost exceeding $100 million, all of which went to lawyers and advisors, sacrificing the interests of creditors and earners, this has been enough.

For this reason, we have attached a proposed best and final offer that is fair and reasonable for everyone and represents the minimum that the creditors being asked to support the transaction will accept.

If you do not agree to this transaction by 4:00 pm Eastern Time on July 6, we will take the following steps:

Lawsuit filed against DCG and you personally: This lawsuit will be filed on July 7. Among other things, it will outline your personal responsibility in concealing the Genesis bankruptcy and serve as a blueprint for similar lawsuits filed by 232,000 Earn users against you and DCG.

Motion for turnover: We will request that the Genesis special committee fulfill its fiduciary duty and file a motion for turnover by July 7 or earlier, placing DCG in default and demanding immediate payment of the owed $630 million to creditors and Earn users, no further delays.

Pursuit of non-consensual plan: We will collaborate with the Genesis special committee to advance a non-consensual plan that adheres to a strict timeline and specifies immediate distribution to creditors and Earn users, with DCG's contribution being subject to litigation.

UCC litigation: We will request that the Unsecured Creditors Committee (UCC) fulfill its fiduciary duty and bring litigation and evidence gathering against the various intercompany loans and transactions between DCG and Genesis entities.

Gemini looks forward to working with the Genesis special committee to bring the mediation process to a close and advance the bankruptcy process for prompt relief to Earn users.

Lastly, over the past 9 months, I have witnessed many unethical behaviors from you and your colleagues, but what's most disturbing is what you said to me this fall, that you are the victim in all this.

This requires a special "person" who can owe tens of thousands of people 33 billion dollars and believe, or at least pretend to believe, that they are the victims. Even a "SB" does not have the ability to have such delusions. Finally, he at least recognizes how his actions have hurt others and tries to make things right. I can confidently say that I am speaking on behalf of all Earn users, it's time for you to do the right thing.

Cameron Winklevoss.