Gemini’s Winklevoss Alleges DCG and Genesis Defrauded His Exchange And 340,000 Users

Cameron Winklevoss, president and co-founder of Gemini, has written an open letter demanding Barry Silbert’s removal as CEO of Digital Currency Group.Author:BtcCaseyPublish date:Jan 10, 2023Cameron Winklevoss, president and co-founder of Gemini, has written an open letter demanding Barry Silbert’s removal as CEO of Digital Currency Group.The Co-Founder of Gemini, Cameron Winklevoss, has released an extensive letter alleging that Genesis and its parent company, Digital Currency Group (DCG), defrauded Gemini and more than 340,000 Gemini Earn users. The letter also makes claims against Barry Silbert, as well as other key personnel from the companies. The letter claims that Genesis Global Capital LLC, Genesis Trading’s $2.8 billion crypto lending arm suffered losses of at least $1.2B in the wake of Three Arrows Capital’s collapse. Instead of taking steps to restructure and protect users, it tried to deceive others into believing that $1.2B of working capital had been invested into the company. According to the letter, the firm allegedly claimed that a 10-year promissory was marked down as a current asset. This is a term that normally refers to cash, cash equivalents or other assets that can be converted into cash within one-year. Winklevoss argues that a promissory note with a principal payment due in 10 years is not considered a “current asset” by a country mile. Winklevoss also explains how Genesis allegedly loaned to Three Arrows Capital, without considering the risk of these loans. The crypto hedge fund was reportedly redirecting investment into Grayscale Investments GBTC, which in turn limited the Trust’s growing discount. This risk was then passed to Gemini Earn users. The letter claims that greed was ultimately responsible for these investment decisions, and subsequently, the loss of funds by Gemini Earn users. The letter ends with a paragraph that reads, “There is no way forward as long as Barry Sibert continues to be CEO of DCG.” He has proven unfit to lead DCG and is unwilling and unable find a fair and reasonable resolution with creditors. Gemini, on behalf of 340,000 earn users requests that the Board immediately remove Barry Silbert from his position as CEO and replace him with a new CEO who will correct the wrongs committed under Barry’s leadership. While bitcoin can be stolen or frozen if it is not held in custodians, it is worth noting that bitcoin that is properly stored in cold storage is safe from theft and freezing. Gemini Earn users introduced third-party risk and unneeded trust when they stored their funds on the platform. The platform then brazenly lent them out. To clarify the differences between these platforms, and the risks associated with them, and to ensure that bitcoin is properly stored in self-custodial custody, Bitcoiners should do so. In response to the letter, DCG’s Twitter account released an official statement, embedded below.Tagsterms:Digital currency groupGeminiCameron WinklevossDcgGenesisBarry Silbert

 

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