Digital Currency Group CEO Barry Silbert Responds to Accusations by Gemini’s Cameron Winklevoss With Shareholders Letter

Barry Silbert, CEO of Digital Currency Group (DCG), has released a missive to shareholders successful effect to a caller unfastened missive from Gemini CEO Cameron Winklevoss. The letter, issued Tuesday by Winklevoss, calls for the DCG committee to unit Silbert to measurement down arsenic CEO. Silbert shared his missive connected Twitter and said helium had been reflecting profoundly implicit the past twelvemonth connected the authorities of the cryptocurrency manufacture and its direction.

Digital Currency Group CEO Barry Silbert Releases Shareholders Letter

On Tuesday, Digital Currency Group CEO Barry Silbert wrote a letter to shareholders successful effect to accusations made by Gemini CEO Cameron Winklevoss. Winklevoss had antecedently accused DCG of misrepresentation and called for Silbert’s resignation arsenic CEO. Silbert’s letter, which does not straight code immoderate of Winklevoss’ circumstantial allegations, does see a Q&A league that addresses definite matters.

“I’ve been reflecting rather a spot astir the past year, the authorities of the industry, and wherever things spell from here,” Silbert wrote connected Twitter sharing his letter.

The shareholder missive starts disconnected by expressing pridefulness successful the relation that the institution and Silbert person played successful the past 10 years arsenic builders successful the blockchain industry. Silbert said that DCG has invested successful much than 200 firms and successful the aboriginal days of the industry, the institution faced galore difficulties and hurdles. The missive past shifts to sermon the challenges faced by the institution successful the past year. Silbert said atrocious actors and repeated blow-ups person wreaked havoc connected the industry, and the institution has faced difficulties arsenic a result.

“Although DCG, our subsidiaries, and galore of our portfolio companies are not immune to the effects of the contiguous turmoil, it has been challenging to person my integrity and bully intentions questioned aft spending a decennary pouring everything into this institution and the abstraction with an unrelenting absorption connected doing things the close way,” Silbert wrote.

Gemini co-founder Cameron Winklevoss (pictured left) and Digital Currency Group CEO Barry Silbert (pictured right).

The Q&A portion of Silbert’s missive goes connected to explicate however DCG interacts with its wholly-owned subsidiaries and portfolio companies. The missive stresses that DCG subsidiaries are autarkic companies with their ain absorption teams. The institution details that this includes fiscal and hazard absorption protocols, and ineligible and compliance oversight. One of the questions asks whether oregon not DCG and its subsidiaries commingle cash.

“No,” the Q&A portion of the missive insists. “Each of DCG’s wholly-owned subsidiaries has its ain slope accounts, securities accounts, and crypto accounts, and maintains abstracted books and records.”

The Q&A portion further notes that DCG’s narration with FTX was a $250K Series B concern successful 2021 and an FTX trading relationship “with little than 1% of each our trading measurement transacted connected that platform.” “Barry has nary idiosyncratic oregon nonrecreational narration with Sam Bankman-Fried,” the missive stresses. “Aside from a speech successful the Summer of 2022 and a fewer emails astatine the time, Barry does not callback ever meeting, speaking with, oregon different privately communicating with him.”

DCG’s Alleged Relationship with Three Arrows Capital and Genesis Capital Explained successful Q&A Session, Gemini Terminates Earn Program

The Q&A conception of the missive besides addresses alleged ties betwixt Digital Currency Group (DCG) and Three Arrows Capital (3AC), the now-defunct cryptocurrency hedge fund. The missive asserts that “DCG has ne'er had a narration with Three Arrows Capital” and that Barry Silbert, CEO, has ne'er met the 3AC executives. However, Silbert acknowledged that determination had been an “introductory telephone with 1 of the co-founders successful 2020.” Additionally, portion Genesis Capital, a subsidiary of DCG, had a trading and lending narration with 3AC, and 3AC defaulted connected its loans from Genesis, DCG stated that it “never coordinated purchases oregon income of GBTC oregon immoderate different investments” with the bankrupt crypto hedge fund.

The missive besides addresses the reasons down DCG’s determination to instrumentality connected the bankruptcy assertion against 3AC and what DCG received successful speech for the $1.1 cardinal promissory enactment from Genesis Capital. According to DCG, the betterment is “highly uncertain” and the institution “did not person immoderate cash, cryptocurrency, oregon different forms of outgo for the promissory enactment – DCG efficaciously assumed Genesis’ hazard of nonaccomplishment connected the Three Arrows Capital indebtedness with nary work to bash so,” the institution explained successful a Q&A conception of the letter. Even though it is uncertain what whitethorn hap successful the adjacent aboriginal betwixt DCG and Gemini, Silbert remains optimistic.

Following Silbert’s shareholder letter, Gemini sent retired emails to Earn customers, notifying them that the work was officially terminated. “We are penning to fto you cognize that Gemini, acting arsenic cause connected your behalf, has terminated the Master Loan Agreement (MLA) betwixt you and Genesis Global Capital, LLC (Genesis), effectual arsenic of January 8, 2023,” the email from Gemini said. “This officially terminates the Earn Program and requires Genesis to instrumentality each assets outstanding successful the program,” according to the email. “Existing redemption requests are not impacted and proceed to await fulfillment by Genesis,” Gemini added.

What are your thoughts connected the effect from Digital Currency Group’s CEO, Barry Silbert, to the accusations from Gemini’s CEO, Cameron Winklevoss? Leave your comments below.

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