The Winklevoss' Gemini terminates its yield product as dispute between the crypto exchange and DCG escalates
AP
- Gemini told clients that the crypto exchange will terminate its interest-bearing product.
- The news signals an end of a partnership between Gemini and embattled brokerage Genesis.
- Gemini cofounder Cameron Winklevoss accused Genesis, its parent company DCG, and founder Barry Silbert of fraud on Tuesday.
Gemini, the cryptocurrency exchange started by the Winklevoss twins, is terminating its interest-bearing product, the company told clients on Tuesday. The firm ended its master loan agreement and partnership between Gemini and crypto brokerage Genesis.
"This officially terminates the Earn Program and requires Genesis to return all assets outstanding in the program," according to Gemini's email, which was first reported by Coindesk. "Existing redemption requests are not impacted and continue to await fulfillment by Genesis."
Genesis' lending arm halted customer withdrawals in November, leaving $900 million of Gemini client money in the lurch. The lending business, which is owned by crypto conglomerate Digital Currency Group, experienced a severe liquidity crunch due to FTX exposure and an onslaught of withdraw requests.
The decision to terminate the offering comes amid a public back-and-forth between crypto execs over allegations of bad faith business tactics and claims that DCG owes Gemini customers nearly $1 billion.
In an open letter to DCG's board on Tuesday, Gemini cofounder Cameron Winklevoss accused Genesis, DCG, and the holding company's founder Barry Silbert of accounting fraud. Winklevoss also called for Silbert to step down as CEO of DCG immediately.
"While we obviously do not agree with everything that Gemini has said, and we are disappointed that Gemini is waging a public media campaign despite ongoing productive private dialogue between the parties, we remain focused on finding a solution for our borrowing and lending intermediation business and reaching the best outcome for all affected Genesis lending and Gemini Earn clients," a Genesis spokesperson told Insider.
The spokesperson added: "We continue working with our advisors, in collaboration with DCG and advisors appointed by various client groups, to evaluate options to preserve client assets and move the business forward."