• Cameron Winklevoss has released an extensive letter alleging that Genesis, its parent company Digital Currency Group (DCG), and key personnel have defrauded Gemini and 340,000 Gemini Earn users.
• The letter claims that Genesis Global Capital LLC, Genesis Trading’s $2.8 billion crypto lending arm, realized losses of at least $1.2 billion, and instead of taking action to restructure and protect users, the fund allegedly marked a 10-year promissory note down as a current asset.
• The letter concludes that greed is what has driven these investment decisions, resulting in the loss of Gemini Earn users’ funds, and that Barry Silbert’s removal is necessary for the path forward.
Cameron Winklevoss has recently released a detailed letter alleging that Genesis, its parent company Digital Currency Group (DCG), and key personnel have defrauded Gemini and 340,000 Gemini Earn users. According to the letter, Genesis Global Capital LLC, Genesis Trading’s $2.8 billion crypto lending arm, realized losses of at least $1.2 billion in the wake of cryptocurrency hedge fund Three Arrows Capital’s collapse. Instead of taking action to restructure and protect users, the fund allegedly marked a 10-year promissory note down as a current asset, which normally “refers to cash, cash equivalents, or other assets that can be exchanged into cash within one year,” according to the letter. This misattribution of assets has resulted in user funds being lost.
As the letter further explains, Genesis was allegedly lending to Three Arrows Capital without regard to the risk of these loans, as the crypto hedge fund was apparently redirecting investment into Grayscale Investments’s GBTC, which limited the growing discount of the Trust. This risk was then passed on to the users of Gemini Earn. Winklevoss claims that greed is ultimately what has driven these investment decisions and apparently, the loss of Gemini Earn users’ funds.
The letter concludes with a paragraph which reads, “There is no path forward as long as Barry Sibert remains CEO of DCG. He has proven himself unfit to run DCG and unwilling and unable to accept responsibility for his actions. We urge the Board of DCG to take immediate action to remove Barry Silbert from his role as CEO and Chairman of the Board of DCG and its subsidiaries.” Clearly, Winklevoss believes that Silbert’s removal is necessary for the path forward, and for the protection of users.
