Winklevoss twins: From Facebook feud to Bitcoin billionaires
Twins who sued Mark Zuckerberg for stealing their idea continue to make waves
The Winklevoss twins, Cameron and Tyler, have a story that's stranger than fiction. It involves a bitter legal battle, a massive financial bet, and a rise to crypto prominence.
In the early 2000s, while studying at Harvard, the twins had a vision for a social network, and co-founded a social network called ConnectU. They were self-taught HTML coders, which they started tinkering around with from age 13.
From Harvard to betrayal
They then enlisted a coding prodigy named Mark Zuckerberg to bring it to life. Facebook soon launched, and the Winklevoss twins felt Zuckerberg stole their idea.
Outraged, they sued Zuckerberg, while Facebook skyrocketed in popularity.
In the 2010 movie "The Social Network", Zuckerberg was seen discussing with a friend about the merits of the lawsuit filed against him by the wins. Zuckerberg, in the movie, insisted he didn't copy a single code from ConnectU.
After a four-year legal battle, the twins settled in 2008 for $65 million — $20 million in cash and $45 million in Facebook stock.
Most would have moved on, but not the Winklevoss brothers.
Holding on to Facebook stock
They held onto that Facebook stock, believing in the company's potential despite feeling betrayed.
While others might have cashed out, the Winklevoss twins saw potential. This move paid off handsomely as Facebook's IPO skyrocketed the value of their shares.
By Facebook's IPO in 2012, their $45 million stake had grown to $200 million, turning their adversary's success into their own gain.
But their story doesn’t end there.
Now, 14 years after the 2010 film "The Social Network" catapulted them into the public eye, the Winklevoss twins continue to make headlines.
The Bitcoin vision
In the summer of 2013, the twins discovered Bitcoin, priced at just $8 per coin. After months of research, they concluded that Bitcoin had the potential to be even bigger than Facebook.
They made a bold move, buying 1 per cent of all Bitcoin in circulation at the time — 120,000 BTC — costing them $11 million.
Critics called them crazy, dismissing Bitcoin as "magic internet money."
They saw something deeper: a financial revolution driven by Bitcoin's limited supply, decentralised nature, and borderless capabilities. The twins became Bitcoin’s biggest advocates, speaking at events and educating people about it.
Why? More people using Bitcoin meant a rise in its value.
They pushed for wider adoption of cryptos. And their long-term vision paid off again as Bitcoin's price surged.
Then twins then launched Gemini, a regulated cryptocurrency exchange, to bring trust and security to the crypto space.
How it played out
By 2017, Bitcoin’s price surged to $20,000. Their initial $11 million investment had skyrocketed to $1.3 billion. But instead of cashing out, they doubled down, investing even more in the crypto space, expanding globally, and driving crypto adoption.
The twins became vocal proponents of Bitcoin, educating the public and pushing for wider adoption. Their long-term vision paid off again as Bitcoin's price surged in 2017 and 2021. As strong believers in crypto and in Bitcoin's future, the twins launched Gemini, a regulated cryptocurrency exchange, to bring trust and security to the Wild West-like crypto space.
Their long-term vision paid off.
When COVID hit in 2020 and governments printed trillions of dollars, people began to view Bitcoin as "digital gold" — a safe haven for wealth in uncertain times. By 2021, Bitcoin soared past $60,000, and the twins' crypto empire was worth billions.
In 2024, combined net worth of 43-year-old Winklevoss twins stood at $5.4 billion. According to Forbes, Cameron and Tyler Winklevoss's net worth was $2.7 billion each as of May 30, 2024.
Today, they continue working to make crypto mainstream by:
- Simplifying Gemini for users
- Advocating for clear crypto regulations
- Investing in the next big blockchain innovations.
SEC Complaint
Their foray into cryptos has not been a piece of cake. In October 2023, US Attorney General Letitia Ann James sued Gemini for lying to investors about its Gemini Earn program.
Gemini repeatedly assured investors that investing with Genesis through their Gemini Earn program was a low-risk investment.
According to the SEC's complaint, the Gemini Earn program was a purported investment opportunity where Gemini customers, including retail investors in the US, loaned their crypto assets to Genesis in exchange for Genesis' promise to pay interest earned from Genesis' use of the loaned crypto assets.
Gemini Earn Program: Beginning in February 2021, the Gemini Earn program allowed retail investors to loan
their crypto assets to Genesis, with Gemini acting as the facilitating agent and deducting an agent fee from the returns paid to investors.
Gemini Earn Program: Beginning in February 2021, the Gemini Earn program allowed retail investors to "loan" their crypto assets to Genesis, with Gemini acting as the facilitating agent and deducting an agent fee from the returns paid to investors.
Use of Assets: Genesis had discretion over how to use the investors' crypto assets to generate revenue and pay interest to the Gemini Earn investors.
Offering: Genesis and Gemini raised billions of dollars in crypto assets from hundreds of thousands of investors through this unregistered offering. The SEC believes the offering was unregistered, and therefore illegal.
SEC Charges: In January 2023, the SEC charged Genesis and Gemini for the unregistered offer and sale of securities through the Gemini Earn crypto lending program.
Ongoing investigations: The SEC is continuing investigations into other potential securities law violations and related entities or individuals.
Beyond crypto: Lessons learnt
The Winklevoss story is more than just about Bitcoin. It's a masterclass in turning setbacks into opportunities. Here are the key takeaways:
Rejection as redirection: The Facebook loss opened the door to a billion-dollar crypto future.
Embrace a rival's success: The twins' wealth grew alongside Facebook's.
Spot trends and go all-in: The Winklevoss twins didn't just invest in Bitcoin; they built an ecosystem around it.
Long-term thinking and reinvesting: They continued to invest in the crypto space, propelling their wealth further.
Educate your market: By demystifying crypto, they expanded the industry and their influence.
Embrace curiosity and don't let "No" stop you: Explore emerging trends and persevere through challenges.
The Winklevoss twins' journey reminds us that sometimes, the biggest successes lie beyond initial setbacks. It's a story of resilience, calculated risk-taking, and a vision for the future.
June 14, 2024
- On June 14, 2024, New York Attorney General Letitia James announced that her office had recovered $50 million from cryptocurrency platform Gemini Trust Co (Gemini).
- The settlement agreement ensures full recovery for all defrauded investors.
- As part of the settlement, Gemini agreed to a ban on operating crypto lending programs within New York State.