Key points to remember
- Gemini co-founder Cameron Winklevoss today released an open letter addressed to the board of the Digital Currency Group.
- Winklevoss called on the board to oust Barry Silbert as CEO of DCG.
- He claimed that Silbert “carefully engineered a campaign of lies” around Genesis’s financial health to trick lenders into providing more funds to the company.
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Gemini took another step against Digital Currency Group today when co-founder Cameron Winklevoss called on the company’s board to fire Barry Silbert.
“A Campaign of Lies”
The tension between Gemini and DCG reaches new heights.
In an open letter published Today on Twitter, Gemini co-founder Cameron Winklevoss called on the Digital Currency Group’s board to remove Barry Silbert as CEO.
Winklevoss accused Silbert, DCG and Genesis of defrauding 340,000 Gemini Earn users. According to Winklevoss, the group made false claims about Genesis’ financial health and creditworthiness in order to trick lenders into providing new loans to the company.
The four-page letter gives a timeline of DCG’s alleged lies and misrepresentations, beginning with Genesis liquidating Three Arrows Capital in June 2022, resulting in a $1.2 billion loss for the crypto lending firm. Winklevoss alleges that beginning in July, “Barry, DCG and Genesis embarked on a carefully crafted campaign of lies to trick users of Gemini, Earn and other lenders into believing that DCG had injected $1.2 billion worth of real support in Genesis”.
This is the second time Winklevoss has written an open letter on the issue of Genesis and Gemini. On January 2, he accused Silbert of engaging in “bad faith stall tactics” and refusing to enter a room with Gemini representatives to resolve Genesis’ liquidity crisis.
Genesis is a crypto credit company and a subsidiary of Digital Currency Group. The company suspended redemptions and new loans on November 16, citing “unprecedented market turbulence” due to the collapse of FTX. As a result, Gemini was forced to shut down its Earn program, which relied on Genesis to provide loan services to Gemini customers. Winklevoss previously claimed that Genesis owes Gemini Earn customers more than $900 million.
Disclaimer: At the time of writing this article, the author of this article owned BTC, ETH, and several other crypto assets.