Users of Gemini Earn have asked for class-action arbitration proceedings to be held against Genesis Global Capital and Digital Currency Group. A class action lawsuit was also brought against Gemini in December. According to Cameron Winklevoss, Genesis Global Capital and its parent organization, DCG, are allegedly owed $900 million by clients of Gemini. CEO of Digital Currency Group Barry Silbert refers to the claims as “stall tactics in bad faith.” According to Silbert, DCG has never failed to pay interest to Genesis. DCG has a promissory note for $1.1 billion from Genesis linked to obligations related to the failure of Three Arrows Capital. In November, Silbert stated in a letter to shareholders that DCG also owed $575 million to Genesis Global and that this obligation was due in May. When FTX declared bankruptcy, Genesis froze withdrawals and put an end to the creation of new loans. Winklevoss’ letter comes at a time when his business was experiencing severe financial difficulties, including a lawsuit against the company’s Earn product alleging fraud and violations of securities law and an army of angry Earn users who have been unable to access their accounts. Requests for additional comment from Winklevoss and Silbert went unanswered.
The lending protocol Kashi and the token launchpad Miso of SushiSwap will both be discontinued. According to CEO Jared Grey, the business has been following a strategy that involves renegotiating infrastructure agreements and reducing “underperforming or unnecessary dependencies.” The choice was made at a time when the platform’s financial situation was extremely unstable lately. The company revealed in a December update that it has only 1.5 years’ worth of operational expenses, adding that “the situation requires prompt action to assure sufficient resources for ongoing operation.” In order to reduce annual spending to $5 million, according to SushiSwap CEO Jared Grey, the company has been pursuing a strategy that includes renegotiating infrastructure contracts, trimming “underperforming or unnecessary dependencies,” and enforcing a budget freeze on costs like “non-critical personnel and infrastructure.” Grey revealed in a tweet the same month it had lost $30 million over the previous 12 months.
Read about: New year starts with new regulations
