Gemini

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Winklevoss’ crypto exchange Gemini was exploring an option to merge with crypto broker Genesis to compete with Coinbase and FTX. 
In October 2022, just a month before <a href="https://crypto.news/tag/ftx/" target="_blank" rel="noreferrer noopener">FTX</a> filed for bankruptcy, <a href="https://crypto.news/tag/gemini/" target="_blank" rel="noreferrer noopener">Gemini</a> co-founder Cameron Winklevoss discussed at a lunch with <a href="https://crypto.news/tag/digital-currency-group/" target="_blank" rel="noreferrer noopener">Digital Currency Group</a> (DCG) CEO Barry Silbert an idea of a closer partnership between the two companies that would make the joint entity a “juggernaut” to compete with Coinbase and FTX. 
According to recently revealed <a href="https://dcgupdate.com/wp-content/uploads/2024/03/Barry-Silbert-Motion-to-Dismiss-March-2024.pdf" target="_blank" rel="noreferrer noopener">court filings</a>, Cameron Winklevoss was “intrigued about the idea of a closer partnership between Genesis/Gemini/DCG, including a potential merger of the companies,” Silbert wrote in an email to other DCG executives. 
Silbert, according to the email, also warned Winklevoss at lunch about a possible bankruptcy of Genesis, which in turn, would put the exchange’s deposits at “significant risk.” Despite the warning, Cameron Winklevoss decided to continue to work with Genesis “to mitigate that risk.” 
<blockquote class="wp-block-quote"> 
 “I put him on clear notice that the path we’re on right now could lead to a Genesis bankruptcy, which would put Gemini’s deposits (and therefore, Gemini’s business) at significant risk. He took that part surprisingly well and appreciates we need to work together to mitigate that risk.” 
 Barry Silbert 
</blockquote> 
According to disclosed correspondence, the combined company “would be super exciting to investors,” as it could go raise between $500 million up to $1 billion and take the company public “in 24 months.” Moreover, the joined entity would also make an opportunity to “acquire and roll up weak competitors,” Silbert noted. 
Barry Silbert, who resigned as Grayscale chairman in late December 2023, allegedly was also mulling the idea of transferring Grayscale’s assets to Gemini, thereby making the exchange the “largest custody provider in the world.” Silbert also emphasized the combined entity “could use Coin Desk for customer lead gen.” 
 You might also like: <a href="https://crypto.news/dcg-files-objection-in-bankruptcy-court-calls-out-genesis-settlement-subversive/"> DCG files objection in bankruptcy court, calls out Genesis’ settlement subversive </a> 
The trajectory of Genesis took a downturn when it <a href="https://crypto.news/dcg-and-genesis-reach-landmark-settlement-over-bankruptcy/" target="_blank" rel="noreferrer noopener">filed</a> for Chapter 11 bankruptcy protection in early 2023, following FTX’s collapse. Subsequently, Gemini initiated legal action against Genesis in late October 2023, seeking ownership of approximately 60 million GTBC shares that Genesis had offered as collateral. 
Both Gemini and Genesis faced legal challenges, including a <a href="https://www.sec.gov/news/press-release/2023-7" target="_blank" rel="noreferrer noopener">lawsuit</a> from the U.S. Securities and Exchange Commission (SEC) for unlawful securities sales through the Earn program. Additionally, New York Attorney General Letitia James <a href="https://crypto.news/gemini-genesis-dcg-slammed-with-1b-crypto-fraud-lawsuit/">filed</a> a civil lawsuit totaling $1 billion against Gemini, Genesis, and DCG, alleging their involvement in defrauding American investors. Later, James <a href="https://crypto.news/new-york-ag-lawsuit-dcg-3-billion-genesis-settlement/" target="_blank" rel="noreferrer noopener">escalated</a> the demand for restitution to $3 billion. 
 Read more: <a href="https://crypto.news/bankrupt-genesis-seeks-to-sell-over-1b-gbtc-shares/"> Bankrupt Genesis seeks to sell over $1b worth of Bitcoin trust shares </a>

Crypto exchange Gemini planned public debute via Genesis merger, court documents show

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