Gemini’s Winklevoss calls for DCG chief Barry Silbert to be fired

Cameron Winklevoss, co-founder of cryptocurrency trade Gemini, referred to as for the dismissal of Digital Foreign money Group Inc Chief Government Officer, Barry Silbert, on Tuesday amid tensions amongst high-profile executives following the collapse of FTX.

Stamford, Connecticut-based Digital Foreign money Group (DCG) is the dad or mum firm of a number of high-profile crypto corporations, together with Grayscale and Genesis, crypto asset managers that dealer digital property for monetary establishments reminiscent of hedge funds and asset managers.

The battle comes after Genesis’ crypto lending arm stopped prospects’ withdrawals in November when crypto trade FTX filed for chapter.

Winklevoss’ Gemini provided a crypto lending product referred to as Earn in partnership with DCG’s Genesis International Capital and now says Genesis owes him $900 million in reference to that product.

In an open letter to DCG’s board, Winklevoss stated Genesis and DCG “rip-off” about 340,000 Earn customers.

“There isn’t any manner ahead so long as Barry Silbert stays DCG’s CEO,” Winklevoss wrote. “He has confirmed unfit and unwilling to handle DCG, and unable to seek out each a good and affordable settlement with collectors.”

A DCG spokesperson referred to as Winklevoss’s allegations “malicious, false and defamatory” and stated the corporate was “sustaining all authorized avenues in response.”

“That is one other determined and unconstructive promotional stunt by Cameron Winklevoss to deflect the blame onto Gemini and himself, who’re solely chargeable for working Gemini Earn and advertising this system to its prospects,” the spokesperson stated.

A Genesis spokesperson stated in a press release that the corporate was dissatisfied that Gemini was “operating a public media marketing campaign regardless of continued productive personal dialogue between the events.”

“We stay targeted on discovering an answer for our borrowing and lending brokerage enterprise and attaining the very best final result for all affected Genesis mortgage and Gemini Earn prospects,” a Genesis spokesperson stated.


The newest improvement comes every week after Winklevoss wrote one other open letter to Silbert accusing him of utilizing “malicious distraction ways.”

DCG owes $1.675 billion to the crypto lending arm of its subsidiary Genesis, in line with a letter Silbert despatched to shareholders in November.

This consists of $1.1 billion in securities that seem like linked to obligations DCG took from Genesis after the collapse of Singapore-based crypto hedge fund Three Arrows Capital.

In Tuesday’s letter, Winklevoss alleged that Silbert misrepresented the obligations DCG stated it had assumed from Genesis relating to cash Three Arrows Capital owed Genesis.

“Starting in early July 2022, Barry, DCG and Genesis launched an elaborate false marketing campaign to persuade customers of Gemini, Earn, and different lenders that DCG has injected $1.2 billion of real assist into Genesis,” Winklevoss stated.

Citing “unprecedented business challenges,” Genesis lower 30% of its workforce in a second spherical of layoffs in lower than six months final week.

Gemini shaped a committee of collectors to recoup the funds he stated and others owed Genesis. This committee employed Kirkland & Ellis as advisor and Houlihan Lokey as monetary advisor.

(Reported by Niket Nishant of Bengaluru and Hannah Lang of Washington; edited by Subhrashu Sahu, Conor Humphries, Josie Kao and David Gregorio)

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