Court Documents Reveal Digital Currency Group’s Merger Proposal for Genesis and Gemini

DCG CEO Barry Silbert’s email in 2022 has revealed an intriguing possibility of a merger between Genesis and Gemini, according to court documents. The proposed “commercial partnership” aimed to rival crypto exchanges like Coinbase and FTX, with plans to take the merged entity public and raise $500-1 billion. Silbert shared this proposal with Cameron Winklevoss, who intended to discuss it with his brother Tyler Winklevoss.

Genesis and Gemini had introduced the joint “Earn” program, allowing customers to earn interest on their cryptocurrency holdings. However, the program encountered difficulties, leading to Genesis freezing customer withdrawals in November 2022. In January 2023, Genesis Global filed for Chapter 11 bankruptcy protection, seeking $1.1 billion for its Earn program users. It is worth noting that Gemini withdrew around $280 million from Genesis just before the freeze and bankruptcy filing.

Furthermore, Genesis and Gemini faced allegations from the U.S. Securities and Exchange Commission (SEC) in January 2023 regarding the unregistered sale of securities through the Earn program.

In a separate development, DCG successfully settled over $1 billion in debt, including a significant amount owed to its bankrupt subsidiary, Genesis. This achievement was shared by Barry Silbert on the Xplatform, highlighting the complex dynamics within the crypto industry that led to the debt settlement process following Genesis’ lawsuit against DCG and its affiliate, DCIG.