Gemini Co-Founder Alleges Digital Currency Group of False Promises, Requests CEO’s Removal – Crypto News
Gemini’s CEO Cameron Winklevoss has recently published an open letter on Twitter Addressed to the members of the Digital Currency Group (DCG). In the letter, Winklevoss accuses DCG and CEO Barry Silbert of making poor decisions with the now-defunct crypto hedge fund Three Arrows Capital (3AC), and maintains that DCG orchestrated a “campaign of lies” to mislead crypto users into believing that everything was in order. Winklevoss believes that the only way forward is for the DCG board to remove Silbert as CEO.
The dispute between Gemini and the Digital Currency Group continues with a second open letter
About a week ago, Bitcoin.com News reported on an open letter sent by Cameron Winklevoss, co-founder of the Gemini Cryptocurrency exchange, to Digital Currency Group (DCG) CEO Barry Silbert. In the letter, Winklevoss claimed that DCG owed its lending arm, Genesis Global Capital, $1.675 billion. Silbert, however, strongly contested Winklevoss’ statements, which were made after the letter was published.
“DCG did not borrow $1.675 billion from Genesis”, Silbert tweeted at the time. “DCG has never stopped paying interest to Genesis and is current on all outstanding loans; the next maturity of the loan is May 2023”. After Silbert’s statement, Winklevoss gave DCG a deadline to respond by January 8, 2023, but it is not clear if DCG or Silbert attempted to find a resolution with Gemini. The open letter to the DCG board, however, implies that no agreement was reached within that time frame.
Earn Update: An open letter to The Board Of @DCGco pic.twitter.com/eakuFjDZR2
—Cameron Winklevoss (@cameron) January 10, 2023
In this open letter to the DCG board members, Winklevoss makes allegations that Genesis lent $2.36 Billion to the now-defunct crypto hedge fund, Three Arrows Capital (3AC). According to Winklevoss, after the funds were allegedly dissolved, “Genesis was left with a loss of at least $1.2 billion.” “At this point, Barry Silbert had two legitimate options: restructure the Genesis loan book (in or out of bankruptcy court) or fill the $1.2 billion hole”, Winklevoss opined. “He did nothing”. The Gemini CEO claims that DCG actively made “false statements and misrepresentations” about Genesis’ financial situation.
Winklevoss’s open letter states:
This was done to mislead lenders into thinking that DCG had absorbed huge losses. Genesis’ costs incurred by the collapse of Three Arrows Capital (3AC) induced lenders to keep lending to Genesis. By lying, they were able to buy time and get out of the hole they had dug.
The open letter from the Gemini co-founder has generated considerable responses on Twitter. As of the time of writing, however, Silbert or a DCG executive have yet to respond to Winklevoss’s similar allegations made a week prior. It is not a good sign if a CEO avoids a letter from a customer or third-party they are transacting on this level”, an individual commented about Winklevoss’s letter to the