Gemini's COO Resigns! Genesis Needs More Time to Seek Solutions

The issues between cryptocurrency lending institution Genesis and exchange Gemini seem to be worsening, with Genesis informing clients on Wednesday that it continues to work on finding solutions for its troubled lending division but needs more time. Meanwhile, Noah Perlman, the Chief Operating Officer of the aggrieved party Gemini, has also resigned.

Gemini COO Resigns

According to a report from Bloomberg, Noah Perlman, the Chief Operating Officer of Gemini who previously worked at Morgan Stanley, has resigned. Perlman joined Gemini in 2019, initially serving as the Chief Compliance Officer.

Previously, the Gemini exchange had to suspend redemptions of its Gemini Earn product due to issues with the debt repayment capability of Genesis DCG, a subsidiary of Genesis DCG. Co-founder of the exchange, Cameron Winklevoss, posted an open letter to DCG founder Barry Silbert on Twitter, accusing Silbert of malicious delay tactics. Winklevoss claimed that DCG borrowed $1.675 billion from them, resulting in over $900 million being stuck in Gemini Earn for more than 340,000 users, and requested Barry Silbert to publicly commit to working together on a solution by 1/8.

However, Barry Silbert commented below the tweet, stating that DCG did not borrow from Genesis and DCG never delayed interest payments to Genesis Earn, with the next principal due in May.

Despite Winklevoss' subsequent accusations of Silbert's hypocrisy and claims of holding Promissory notes for DCG loans, no concrete evidence was presented, and the conversation seemed to have reached an impasse.

Full article: Gemini Founder: DCG Owes Genesis $1.6 Billion, Malicious Delay, Making Gemini Users Bear the Burden

Genesis Says It Needs More Time to Find a Solution

So, what is the main culprit Genesis doing in response? According to The Block, the cryptocurrency lending institution Genesis informed clients on Wednesday that it is continuing efforts to find a solution for its troubled lending department but requires more time.

Derar Islim, the interim CEO of Genesis, stated in a letter to clients:

While we are working to take action as quickly as possible, this is a very complex process that requires some additional time, and I believe we can find a solution. This includes reducing costs and increasing efficiency.

Additionally, Islim mentioned that they are collaborating with parent company DCG and other advisors to evaluate various options to protect client assets and drive business development.

From the above statements, it appears that the entanglement between Genesis and Gemini has yet to find a suitable solution. Whether they can overcome the debt crisis or initiate bankruptcy reorganization as requested by Gemini's founder remains to be seen.