The public spat between Barry Silbert, CEO of the Digital Currency Group (DCG), and Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, hit a new low on Tuesday when Winklevoss demanded that the board of DCG fires Silbert for being “unfit” to run the company.
He started by writing, “I am writing to inform you that Gemini and over 340,000 Earn users have been defrauded by Genesis Global Capital LLC, along with its parent company Digital Currency Group, its founder and CEO Barry Silbert and other key personnel. .”
According to Winklevoss, the fraud was committed with the intention of tricking the lenders into believing that DCG had assumed Genesis’s losses following the failure of Three Arrows Capital (3AC) in order for them to continue lending. money to Genesis.
His lengthy letter accused Genesis of carelessly loaning money to 3AC as the hedge fund used him for a “kamikaze” swap in which 3AC traded Bitcoin for shares of Grayscale Bitcoin Trust Products (GBTC).
Winklevoss also claimed that Genesis’ problems stemmed from its loans of more than $2.3 billion to 3AC, which resulted in a loss of $1.2 billion when 3AC filed for bankruptcy in June 2022. At that time , Winklevoss claims that Silbert, DCG and Genesis were involved in “a carefully crafted campaign of lies” that led to the showcase that DCG had donated $1.2 billion to Genesis. He argues that Silbert authorized these transactions because it would prevent the sale on the market of GBTC shares, saving the price of the shares.
“There is no way forward as long as Barry Silbert remains CEO of DCG. He has proven unfit to lead DCG and is unwilling and unable to find a solution with creditors that is both fair and Accordingly, Gemini, acting on behalf of 340,000 Earn users, is asking the board to remove Barry Silbert as CEO.