DCG chief Barry Silbert pens letter to shareholders, community reacts

The crypto assemblage woke up to different drama-filled time aft the Digital Currency Group (DCG) chief's reflection went wrong. DCG main Barry Silbert penned a missive to the shareholders connected Jan. 10, reflecting connected the authorities of the crypto marketplace and the increasing FUD astir the company. DCG is the genitor institution of Genesis Global Capital, a crypto lending steadfast and Grayscale, the world’s starring crypto plus manager.

In the letter, Silbert addressed the increasing issues astir DCG and its subsidiaries owing to the carnivore marketplace and FTX contagion. He said that atrocious actors and the implosion of starring crypto companies person wreaked havoc connected the manufacture and noted that “DCG and galore of our portfolio companies are not immune to the effects of the contiguous turmoil.”

I’m incredibly arrogant of the relation that DCG & I person played arsenic pioneers & builders implicit the past decade. We’ve invested successful >200 companies that person developed & shaped the industry, we’ve helped physique the archetypal publicly-quoted BTC fund, the largest plus manager successful the space..(2/10)

— Barry Silbert (@BarrySilbert) January 10, 2023

In the second fractional of the letter, Silbert addressed immoderate of the raging questions astir its narration with FTX, the indebtedness statement with Genesis and more. He said that assistance Genesis had a "trading and lending relationship" with Three Arrows and had invested $250,000 successful FTX’s Series B backing circular successful July 2021. DCG besides borrowed $500 cardinal successful USD betwixt January and May 2022 astatine involvement rates of 10%-12%.and presently owes Genesis Capital $447.5 cardinal successful USD and 4,550 Bitcoin (BTC) worthy $78 cardinal which matures successful May 2023.

Related: It'll beryllium OK: DCG situation apt won’t ‘include a batch of selling’ — Novogratz

However, what puzzled the crypto assemblage much was the information that Silbert avoided addressing Cameron Winklevoss' accusations that came conscionable hours earlier his letter. Winklevoss penned an unfastened missive to the committee of DCG connected Jan. 10, saying CEO Barry Silbert was “unfit” to tally the company. He besides accused Silbert of defrauding customers and hiding down lawyers. Genesis reportedly owes $900 cardinal to Gemini.

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One idiosyncratic connected Twitter wrote that the missive is an denotation that radical mightiness not beryllium getting their wealth back. Another idiosyncratic questioned Silbert’s tactics for buying GBTC shares by selling borrowed BTC and wrote:

“So you borrowed Bitcoins, sold them, and bought GBTC shares? Not definite however you “hedge” GBTC agelong positions with Bitcoins otherwise.”

Other members of the crypto assemblage accused Silbert of deflecting the allegations astatine manus and besides called the missive a "PR tactic."

Laymen terms! I'm Rekt and can't wage @cameron @tyler @Gemini but I did immoderate neat things on the way! https://t.co/8ZzrE5KIyZ

— KingKong (@KingKon43801491) January 10, 2023

A fewer users went connected to compare his tactics to that of Terraform Labs co-founder Do Kwon, portion others speculated that the missive hinted astatine a imaginable firing for Silbert and that helium mightiness suffer his occupation successful the coming weeks.