Genesis CEO Requests More Time After Winklevoss Letter Causes Controversy

In a letter to its clients Genesis Trading's CEO said that more time 

would be needed to resolve the company's financial difficulties.

The interim CEO of Genesis Trading, a cryptocurrency brokerage and lender that was required to stop accepting withdrawals in November 2022, Derar Islim, said on January 4 that the company needs more time to sort out its complicated financial situation. This is in response to an open letter that Gemini co-founder Cameron Winklevoss sent in which he criticised the organisation for the delay in starting withdrawals for his Gemini exchange, which collaborates with DCG.

To Take More Time with Genesis

Genesis acquired $900 million in client cash that belonged to customers of the retail cryptocurrency exchange Gemini after the FTX exchange failed in November. Possibly though there were suspicions that an immediate solution or even a bankruptcy file was on the horizon, Genesis announced at the beginning of December that a resolution of some form would likely be a matter of "weeks" rather than days.

Derar Islim was cited as saying in a letter sent to the brokerage's clients on Wednesday: While we are committed to moving quickly, this is a very difficult procedure and will require some more time.

Genesis added that the company is still working with advisors and that its major objective remains finding a solution for the borrowing and lending industry.

Genesis and DCG's Misguided Efforts

Genesis stated that it had started talks with potential investors as well as their biggest creditors and borrowers, including Gemini and DCG (Digital Currency Group), to come to an agreement on a solution that strengthens their lending business' overall liquidity and also takes care of clients' needs in another letter that was sent out to investors on November 23.

As the founder and CEO of DCG, Barry Silbert, Winklevoss sent an open letter to him on Monday, sparking a Twitter argument. According to the letter, Silbert's DCG and its lending subsidiary Genesis were delaying a contract to release the $900 million that they owe members of Gemini's Earn programme.