On November 16, Genesis halted withdrawals from its lending service shortly after the FTX collapse. Gemini, who partners with Genesis lending to power their Earn program, halted withdrawals hours later. On December 3, the FT revealed that Genesis owes Gemini’s customers $900 million.
On January 2, Cameron Winklevoss — one of the twin brothers who operates Gemini — published an open letter on Twitter to Barry Silbert, the founder and CEO of DCG, which is the parent company of Genesis. DCG also has a substantial amount of money that they have borrowed from Genesis.
« More than 340,000 Earn users … are looking for answers. These users aren’t just numbers on a spreadsheet, they are real people. A single mom who lent her son’s education money to you. A father who lent his son’s bar mitzvah money to you. A husband and wife who lent their life savings to you. A school teacher who lent his children’s college funds to you. A policeman, and so many more. All together, these people entrusted more than $900 million of their assets to you, » wrote Winklevoss, without any apparent self-reflection on the fact that these words could just as easily have been (and should also be) addressed to him by those same customers of his service.