Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, has written an open letter to the Digital Currency Board (DCG) board, demanding the ouster of Barry Silbert, CEO of the venture capital firm.
Amid rising tensions between 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 Gemini of more than $340,000. Planted. Earn Users.
Crypto Boss said that DCG and its CEO Barry Silbert, as well as other key officials, defrauded users by falsely claiming that crypto brokerage Genesis Global Trading was the lending arm of Genesis, which is owned by Digital Currency Group (DCG). was solvent and financially stable. he said:
“They did this in an attempt to mislead lenders to believe that DCG had absorbed massive losses that resulted from the collapse of Three Arrows Capital Ltd. (3AC) and asked lenders to continue lending to Origin.” By lying, he hoped to buy time to dig himself out of the hole he had created.”
In the wake of the collapse of FTX, Genesis announced that it is temporarily suspend redemption and new loan originations. In a statement on Twitter, Genesis says that “unusual withdrawal requests” have exceeded its “current liquidity”.
Following the announcement, Gemini Trust Earn, a program that partnered with Genesis Global to offer high-interest accounts, 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 criticized Silbert in an open letter. Just last week, he issued an open letter to Silbert, accusing him of “malicious stall tactics” and asking him to find a solution by January 8th.
While there was no announcement from Silbert, Genesis interim CEO Derar Islam told customers that they I need more time To solve the financial crisis in their lending business. he said:
“While we are committed to moving forward as quickly as possible, this is a very complex process that will take some additional time. We are confident that we can reach a solution.”
Back in November last year, Silbert tried to reassure investors that they were financially stable, claiming that most of its entities were “doing business as usual.” They even said that they are on pace to generate $800 million in revenue this year on the back of only $25 million raised in seed capital since inception.
Meanwhile, Silbert had earlier claimed on Twitter that the DCG had made an offer on December 29 to advisors to Genesis and the Winklevoss to resolve the dispute, but had not received a reply.
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