Cameron Winklevoss, co-founder of Gemini, published an an open letter to Barry Silbert, chief executive of Digital Currency Group, the parent company of cryptocurrency exchange.

In November 2022 Gemini said in a statement: “We are disappointed that the Earn program SLA will not be met, but we are encouraged by Genesis’ and its parent company Digital Currency Group’s commitment to doing everything in their power to fulfill their obligations to customers under the Earn program. We will continue to work with them on behalf of all Earn customers. This is our highest priority. We greatly appreciate your patience.”

1/6 We are aware that Genesis Global Capital, LLC (Genesis) — the lending partner of the Earn program — has paused withdrawals and will not be able to meet customer redemptions within the service-level agreement (SLA) of 5 business days. https://t.co/9e48pF3Ymn

— Gemini (@Gemini) November 16, 2022

In December Winklevoss published an open letter to which Silbert responded:

“You took this money — the money of schoolteachers — to fuel greedy share buybacks, illiquid venture investments, & kamikaze NAV trades that ballooned the fee-generating AUM of your Trust… all for your own personal gain."

— Dylan LeClair ? (@DylanLeClair_) January 2, 2023

There you go again. Stop trying to pretend that you and DCG are innocent bystanders and had nothing to do with creating this mess. It's completely disingenuous.

So how does DCG owe Genesis $1.675 billion if it didn't borrow the money? Oh right, that promissory note…

— Cameron Winklevoss (@cameron) January 2, 2023

Will you, or will you not, commit to solving this by January 8th in a manner that treats the $1.1 billion promissory note as $1.1 billion?

— Cameron Winklevoss (@cameron) January 2, 2023

Arcane Research said in a report that investors should pay attention to this situation because if Digital Currency Group enters bankruptcy, the company could be forced to liquidate its assets, including sizable positions in the Grayscale Bitcoin Trust, causing further price falls and loss of confidence in the crypto market.

Ahead of the Curve – January 3

Markets have been slow and stagnant over the last few weeks leading BTC's 7-day volatility towards lows not seen since July 2020.

Download now:https://t.co/8ByUjNrz72

— Arcane Research (@ArcaneResearch) January 3, 2023

The open letter did not disclose Gemini’s intended path but Arcane Research could develop into a coordination of an Involuntary petition for a DCG Chapter 11.

“One natural, less liquidity-constrained route to this sale could be to initiate a Reg M, allowing traders to redeem shares at NAV, which would narrow the discounts – this is where the impact will be felt in crypto markets,” said the report. “A Reg M would cause a massive arbitrage strategy of selling crypto spot versus buying Grayscale Trust shares.”