Winklevoss Posts Open Letter to Barry Silbert

Here's the full letter published earlier today

An Open Letter to Barry Silbert

Barry — today marks 47 days since Genesis halted withdrawals. I am writing on behalf of more than 340,000 Earn users who 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. They deserve concrete answers and we are here to get them.

For the past six weeks, we have done everything we can to engage with you in a good faith and collaborative manner in order to reach a consensual resolution for you to pay back the $900 million that you owe, while helping you preserve your business. We appreciate that there are startup costs to any restructuring, and at times things don't go as fast as we would all like. However, it is now becoming clear that you have been engaging in bad faith stall tactics.

For example, on December 2nd we expressed our belief that getting everyone in a room together as soon as possible will be the most productive path towards reaching a resolution." You agreed, but stated you would only do so after there was a proposal on the table. On December 17th, a proposal was delivered to you. On December 25th, Christmas Day, an updated version of this proposal was delivered to you. Despite this, you continue to refuse to get into a room with us to hash out a resolution. In addition, you continue to refuse to agree to a timeline with key milestones. Every time we ask you for tangible engagement, you hide behind lawyers, investment bankers, and process. After six weeks, your behavior is not only completely unacceptable, it is unconscionable.

The idea in your head that you can quietly hide in your ivory tower and that this will all just magically go away, or that this is someone else's problem, is pure fantasy. To be clear, this mess is entirely of your own making. Digital Currency Group (DCG) — of which you are the founder and CEO — owes Genesis (its wholly owned subsidiary) –$1.675 billion. This is money that Genesis owes to Earn users and other creditors. You took this money — the money of schoolteachers — to fuel greedy share buybacks, illiquid venture investments, and kamikaze Grayscale NAV trades that ballooned the fee-generating AUM of your Trust; all at the expense of creditors and all for your own personal gain. It is now time for you to take responsibility for this and do the right thing.

It's not lost on us that you started your career as a bankruptcy restructuring associate. And it's not lost on us that you've been working desperately to try and firewall DCG from the problems that you created at Genesis. You should dispense with this fiction because we all know what you know — that DCG and Genesis are beyond commingled. Everyone takes orders from you and always has. And anything you have done after the fact to pretend otherwise, won't hold up. If instead, you had put all of this energy towards finding a resolution, we would have been done by now. Everyone would be in a better place, including you.

TLDR: Winklevoss Ask Genesis to Solve Problem by Jan 8th, "We Remain Ready and Willing to Work With You, but Time Is Running Out"

Winklevoss Says Genesis Engaging in "Bad Faith Stall Tactics"

Source: https://twitter.com/cameron/status/1609913051427524608