Cameron Winklevoss Calls for DCG Board to Sack Barry Silbert

Gemini
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Ruholamin Haqshanas
Author Categories
About Author

Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
Source: a video screenshot.

Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, has written an open letter to the Digital Currency Board (DCG) board, asking for the removal of the venture capital firm’s CEO Barry Silbert.

Amid growing tensions between the high-profile executives of DCG and Gemini in the wake of the FTX collapse, Cameron wrote an open letter to the DCG board on Tuesday, accusing the venture capital firm and its daughter company Genesis of defrauding more than 340,000 Gemini and Earn users. 

The crypto boss said DCG and its CEO Barry Silbert, as well as other key executives, deceived users by falsely claiming that crypto brokerage Genesis Global Trading, the lending arm of Genesis which is also owned by Digital Currency Group (DCG), was solvent and financially stable. He said:

“They did so in an effort to mislead lenders into believing that DCG had absorbed massive losses that Genesis incurred from the Three Arrows Capital Ltd. (3AC) collapse and induce lenders to continue making loans to Genesis. By lying, they hoped to buy time to dig themselves out of the hole they created.”

In the wake of FTX’s collapse, Genesis announced that it is temporarily suspending redemptions and new loan originations. In a statement on Twitter, Genesis says the “abnormal withdrawal requests” have exceeded its “current liquidity.”

Following the announcement, Gemini Trust Earn, a program that offered high-interest accounts thanks to a partnership with Genesis Global, also halted redemptions in mid-November. Reportedly, around $900 million of Gemini’s customer funds are locked in Genesis. 

Notably, this is not the first time Cameron has lashed out at Silbert in an open letter. Just last week, he issued an open letter to Silbert, accusing him of “bad faith stall tactics” and asking him to find a solution by January 8. 

While no announcement came from Silbert, Derar Islim, the interim CEO of Genesis, told clients that they need more time to resolve the financial crisis plaguing their lending business. He said:

“While we are committed to moving as quickly as possible, this is a very complex process that will take some additional time. We believe we can arrive at a solution.”

Back in November last year, Silbert tried to reassure investors that they are financially stable, claiming that most of its entities are “operating as usual.” He even said that they are on the pace to generate $800 million in revenue this year on the back of just $25 million raised in primary capital since inception. 

Meanwhile, Silbert had previously said on Twitter claiming that DCG delivered a proposal for resolving the dispute to Genesis and Winklevoss’s advisers on December 29, but had received no reply. 

https://www.twitter.com/BarrySilbert/status/1609926715454771200?s=20&t=mLV_jZaVpPDG9zfTxHkYpA

More Articles

Blockchain News
South Korean Lawyer Indicted in $7.9M Crypto Scam Probe
Tim Alper
Tim Alper
2025-02-10 03:00:00
Blockchain News
Japan’s SBI Posts Record Crypto Profits; Aims for Nation’s First USDC Listing
Tim Alper
Tim Alper
2025-02-09 23:30:00
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors