‘Bitcoin Jesus’ Echoes Gemini Claims of ‘Accounting Fraud’ at Genesis

‘Bitcoin Jesus’ Echoes Gemini Claims of ‘Accounting Fraud’ at Genesis

  • Roger Ver said he has enough money to pay Genesis for his unsettled option trades worth $20.9 million.
  • At the same time, Ver suggested that Genesis might have intentionally misreported its financial health back in June.
  • Ver said that Genesis refused to clarify some points in its financial documents.
  • Ver’s comments are similar to Gemini Cameron Winklevoss’, who said that Genesis intentionally misrepresented its financial statements by adding DCG’s ten-year $1.2 billion promissory note with Genesis under its “Current Assets.”
  • According to Winklevoss, the promissory note couldn’t be converted into cash and was actually worth $300 million. He called this Genesis’ move an “accounting fraud.”

Roger Ver, also known as “Bitcoin Jesus” for his early support for Bitcoin, has responded to now-bankrupt crypto lender Genesis’ lawsuit claiming he failed to settle cryptocurrency options trades worth $20.9 million.

Ver said in a Reddit post that he has enough funds to repay the Digital Currency Group (DCG) wholly-owned subsidiary but questioned the lender’s solvency over the past half a year.

“[...] Genesis was required by our agreement to remain solvent — as Genesis can’t ask its clients to play a “heads clients lose, tails Genesis wins” game,” he said. “It appears that at points since at least last June Genesis dipped under the solvency line.”

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Ver went on to say that he asked Genesis to provide financial documents attesting to its financial health last June. He said the lender did provide the documents, but when Ver asked to clarify some points in the documents, Genesis refused to do this and instead filed a lawsuit against him.

“I look forward to an explanation from Genesis as to how exactly they valued some of the questionable line items, including what appear to be discrepancies between the valuation of customer collateral and their own digital assets,” he said, seemingly alluding to Gemini co-founder Cameron Winklevoss’ “accounting fraud” accusations against DCG CEO Barry Silbert.

Gemini’s ‘Accounting Fraud’ Accusations Against Genesis

Ver’s comments about the “discrepancies” on Genesis’ financial documents seem to at least partly allude to what Winklevoss has said about the lender’s misreported financial statements.

In an open letter to the DCG board, Winklevoss alleged that Genesis intentionally misrepresented its financial health by adding DCG’s ten-year $1.2 billion promissory note with Genesis under its “Current Assets.”

This, according to Winklevoss, was incorrect since the promissory note couldn’t be converted into cash. On top of that, Winklevoss claimed that the unsecured long-dated promissory note was worth around $300 million, not $1.2 billion.

Winklevoss called this maneuver an “accounting fraud” and demanded the DCG board to “immediately” remove Silbert from the company. Silbert is still the CEO of DCG, but Genesis has since filed for bankruptcy. 

The lender owes $3.5 billion to its creditors, including over $900 million to Gemini Earn users.

On the Flipside

  • It’s unclear whether Ver will need to actually repay his debts to Genesis.

Why You Should Care

Genesis seems to be in big trouble as new revelations continue. Crypto investors should follow this story to better understand how it all works behind the scenes.

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