An email uncovered in the motion by Digital Currency Group (DCG) and its founder Barry Silbert to dismiss the lawsuit brought by the New York Attorney General has revealed that DCG and crypto exchange Gemini explored a merger before Genesis ultimately filed for bankruptcy. The email, written by Silbert after a lunch meeting with Gemini co-founder Cameron Winklevoss, outlines discussions about combining the two firms under the DCG umbrella.
The Merger Proposal
In the email, Silbert described a “good lunch with Cameron” at which he proposed a potential merger between Gemini and Genesis. “Combined Gemini and Genesis would be a juggernaut and would be competitive with Coinbase and FTX,” he wrote. Silbert suggested the arrangement could start as a commercial partnership and eventually evolve into a full merger. He also brought up the possibility of an initial public offering (IPO) for the merged entity, noting that Cameron was “intrigued by the idea” but needed to discuss it with his brother, Tyler Winklevoss, the CEO of Gemini.
Silbert emphasized that he put Cameron “on clear notice that the path we’re on right now could lead to a Genesis bankruptcy.” Despite this warning, the merger never materialized, and Genesis filed for Chapter 11 bankruptcy protection in January 2023, becoming one of the highest-profile casualties of the FTX collapse.
Aftermath and Litigation
Following the bankruptcy, DCG and its subsidiary became embroiled in disputes over the restructuring plan, which critics said favored certain creditors. Gemini also launched a lawsuit against Genesis, alleging misrepresentations related to its Gemini Earn product. Meanwhile, New York Attorney General Letitia James sued DCG, Gemini, and Genesis, accusing them of defrauding investors of billions of dollars. Silbert and DCG are now seeking to dismiss that lawsuit, and the newly disclosed email is part of their defense—aiming to show that DCG attempted to save Genesis through a merger rather than engaging in intentional fraud.
The email also reveals that Silbert and Cameron discussed a possible IPO, hinting at ambitions to take the combined entity public. However, the talks fell apart, and the legal battles among DCG, Gemini, and Genesis continue to unfold in court.