Gemini co-founder Cameron Winklevoss has called on the Board of Digital Currency Group (DCG) to immediately remove CEO Barry Silbert
According to Winklevoss, the DCG chief executive made false and misleading statements regarding the financial status of crypto brokerage firm Genesis.
- In an open letter on Tuesday (January 10, 2022), Cameron Winklevoss, speaking on behalf of 340,000 Gemini Earn lenders, stated that Barry Silbert claimed to have absorbed the $1.2 billion loss incurred after Three Arrows Capital (3AC) collapsed, which, according to Winklevoss, was untrue.
- The Gemini exec stated that DCG did not inject any funds into Genesis to make up for funds lost at 3AC but instead “entered into a 10-year promissory note with Genesis at an interest rate of 1% – due in 2023.”
- As previously reported by CryptoPotato, Genesis’ lending arm, Genesis Global Capital, froze withdrawals in November following FTX’s collapse.
- The action affected Gemini, as Genesis Global Capital is a borrower in the former’ Earn program.
- While both Gemini and Genesis have been working to find solution for Earn users, it was later revealed that Genesis owes Gemini customers around $900 million.
- Part of the Cameron Winklevoss letter read:
“He has proven himself unfit to run DCG and unwilling and unable to find a resolution with creditors that is both fair and reasonable. As a result, Gemini, acting on behalf of 340,000 Earn users, requests that the Board remove Barry Silbert as CEO, effective immediately, and install a new CEO, who will right the wrongs that occurred under Barry’s watch.”