Cameron Winklevoss Calls for DCG Board to Sack Barry Silbert
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
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