Gemini vs. DCG Is Heating Up. Could Gemini Force Genesis Into Bankruptcy?

Ram Ahluwalia, CEO and cofounder at Lumida, talks about the ongoing dispute between Gemini and Digital Currency Group (DCG), specifically focusing on the actions and statements of DCG CEO Barry Silbert and Gemini’s cofounder Cameron Winklevoss. Ram discusses various aspects of the conflict, including the potential commingling of assets between DCG and its subsidiary Genesis and the options available to Gemini if DCG does not cooperate.

Show highlights:

• how Cameron Winklevoss’s tweets attempt to put Barry Silbert in the same class of actors as Celsius and BlockFi
• whether the assets of DCG and Genesis are commingled
• what Gemini’s options are if DCG does not commit to cooperate
• whether Gemini will file an involuntary petition for Genesis to enter chapter 11 bankruptcy
• why Barry’s statement that DCG didn’t borrow $1.675 billion from Genesis is “very surprising” to Ram
• why it is relevant whether Genesis has a liquidity issue or an insolvency one
• whether a class-action lawsuit alleging Gemini’s earn product is an unregistered security has any merit
• the essential role of the $1.1 billion promissory note and whether Genesis will drag DCG into bankruptcy
• if DCG goes under, what would happen to Grayscale
• whether Valkyrie is going to become the hero and save GBTC
• why DCG needs to accept the credit committee terms, according to Ram

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Guest

Ram:

• • Twitter
  • Ram Ahluwalia’s thread on Fir Tree and Valkyrie
  • Previous appearances on Unchained:
    • Genesis May Be Facing Bankruptcy. Could It Take DCG Down With It?
    • Why Genesis Could Very Well Be Insolvent, Not Just Illiquid

Previous coverage of Unchained on DCG and Genesis: 

• • • ‘The Last Big Whale’: Why the Crypto Contagion of 2022 Eventually Hit Genesis
    • Adam Cochran on Why Crypto Prices Will Be Down Bad for the Next Six Months
    • Is the Collapse of Crypto Lending Over, or Is It Just Starting?
    • The Chopping Block: SBF Wants to Win in the Court of Public Opinion. Will He?

Genesis:

• • Unchained:
    • ​​Gemini Co-Founder Accuses DCG’s Barry Silbert of ‘Bad Faith  Stall Tactics’ 
    • Genesis CEO Says Firm Needs More Time to Find a Solution
    • Genesis Warns of Bankruptcy If Funding Plans Fail: Report
  • Protos: Scoop: Larry Summers gives up advisory role at crypto firm DCG amid criticism
  • Forbes: Gemini Faces Class-Action Lawsuit Over Unregistered Interest-Bearing Accounts
  • WSJ: Crypto Lender Genesis Asks Binance and Apollo for Cash
  • Decrypt:
    • Grayscale Ethereum Trust Trades at Record 60% Low Against Ethereum – Decrypt
  • The Block: DCG CEO Barry Silbert updates shareholders, says company will emerge ‘stronger’
  • FT: Crypto broker Genesis owes Winklevoss exchange’s customers $900mn