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Cameron Winklevoss Intrigued by Genesis/Gemini Merger Idea, Court Documents Reveal
Crypto entrepreneur Cameron Winklevoss showed interest in merging his digital asset exchange Gemini with the digital asset lender Genesis before the plan fell through, as detailed in court documents recently made public. Barry Silbert, CEO of Digital Currency Group (DCG), disclosed in an October 2022 email filed with the Supreme Court of New York. Winklevoss was intrigued by the concept of a closer collaboration between Genesis, Gemini, and DCG, which potentially included a merger between the organizations.
Genesis, a company owned by DCG, had previously formed a partnership with Gemini providing cash for the Earn program. This initiative allowed users to generate cash from their cryptocurrency holdings. However, trouble emerged when Genesis halted customer withdrawals in November 2022 and subsequently declared bankruptcy in January 2023. Gemini has been ensnared in disputes with DCG since, striving to recoup the funds of former clients.
Silbert’s email mentioned his conversation with Winklevoss, acknowledging the looming risk of Genesis bankruptcy jeopardizing Gemini’s deposits and, consequently, its operations. Winklevoss reportedly understood the severity of the situation and expressed the need for collaborative efforts to mitigate the risks. The parties contemplated the possibilities, including a potential merger, with Silbert emphasizing that joining forces could position them as formidable competitors against major exchanges like Coinbase and FTX.
FTX faced insolvency unexpectedly in November 2022, triggering Genesis’ decision to freeze withdrawals due to the ensuing market turbulence. Despite the discussions, Gemini and Genesis did not merge. In the aftermath of Genesis’ bankruptcy, Gemini initiated legal action against the lender.
Last year, the New York Attorney General filed a lawsuit against Gemini, Genesis, DCG, Silbert, and former Genesis CEO Michael Moro for alleged investor fraud. Recently, the NYAG updated the lawsuit, seeking $3 billion in restitution for affected investors.
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