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On Tuesday, January 10, Gemini CEO Cameron Winklevoss published an open letter on Twitter addressing the board member of Digital Currency Group (DCG). Winklevoss accused DCG and its CEO Barry Silbert of their poor decision and their $1.2 investments in Three Arrows Capital (3AC), the crypto hedge that imploded last year.
Besides, the Winklevoww twin has made further allegations on DCG for “misrepresenting” their supposed whole and financial situation at Genesis. However, DCG has responded back to Cameron Winklevoss stating that this is a”desperate and unconstructive publicity stunt” from him trying to deflect himself from Gemini.
The Digital Currency Group noted that Cameron and Gemini are solely responsible for running the Gemini Earn product and marketing it to their customers. For context, Gemini Earn was an interest-bearing instrument offered by the crypto exchange Gemini. Gemini had huge deposits of over $900 million with DCG’s subsidiary Genesis Global. In its message on Tuesday, DCG noted:
We are preserving all legal remedies in response to these malicious, fake, and defamatory attacks. DCG will continue to engage in productive dialogue with Genesis and its creditors with the goal of arriving at a solution that works for all parties.
Winklevoss Wants DCG’s Barry Silbert to Step Down
In his open letter, Cameron Winklevoss demanded that Barry Silbert should step down from his position at the DCG. In the letter, he accuses Silbert of recklessly lending to 3AC wherein 3AC swapped Bitcoin for getting shares in Grauscale’s Bitcoin Trust product (GBTC).
Besides, Winklevoss alleged that DCG failed to report these swaps as “risky derivative trades”. Thus, instead of representing them as collateralized loans, they represented DCG’s balance sheet as healthier than it actually was.
DCG has recently published a detailed Q&A noting that they own Genesis $447.5M and 4,550 BTC due in May 2023. Besides they further stated that they never had any relationship with Three Arrows Capital (3AC). Furthermore, DCG has emphasized that the 1.1 billion promissory note issued by Genesis due in 2032 is not callable. It means that DCG won’t immediately repay the $1.1 billion in the process of Genesis’s possible bankruptcy reorganization.
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