Cameron and Tyler Winklevoss, who famously saw their seminal social media platform get scooped by a guy named Mark Zuckerberg, are now facing heat from customers on their Gemeni platform over a lending scheme ironically called “Earn”. The company offers its customers the ability to earn up to 8 percent by lending out crypto to Genesis, the “defi” platform owned by Barry Silbert’s Digital Currency Group (DCG).
— Cameron Winklevoss (@cameron) January 2, 2023
The letter is conspicuous in the self-absolution implied in Winklevoss’ choice of words, even going so far as to express sympathy for customers who “trusted Genesis”. At no point is there any admission of culpability or apology to the customers of Gemeni’s Earn platform, whose partnership with Genesis was structured by Winklevoss’s team.
Gemeni is currently the defendant in a class action lawsuit brought by Earn customers, and there are allegations of fraud, securities law violations, and even rumours alleging co-mingling of customer funds.
Silbert’s DCG is bogged down in financial difficulties of its own as it was disclosed to shareholders that Genesis had $175 million in funds it couldn’t access on the FTX platform.
Contagion from the FTX fraud is spreading throughout the crypto universe, with further bankruptcies and criminal investigations expected throughout 2023.
Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.
Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.
Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.