Barry Silbert, CEO of the Digital Currency Group, responds to the accusations of Cameron Winklevoss from Gemini with a shareholder letter -
Barry Silbert, CEO of the Digital Currency Group, responds to the accusations of Cameron Winklevoss from Gemini with a shareholder letter -
Barry Silbert, CEO of the Digital Currency Group (DCG), has published a letter to the shareholders in response to a recently published open letter from Gemini-Coo Cameron Winklevoss. The letter published by Winklevoss on Tuesday asks the DCG board to force Silbert to resign as CEO. Silbert announced his letter on Twitter and said that last year he thought intensively about the condition of the cryptocurrency industry and its direction.
Barry Silbert, CEO of the Digital Currency Group, published shareholders' letter
on Tuesday, CEO of the Digital Currency Group, Barry Silbert wrote a letter to the shareholders in response to accusations Made by gemini-Cameron winklevoss. Winklevoss had previously accused DCG incorrect information and demanded Silber's resignation as CEO. Silver's letter, which does not address some of the specific accusations of Winklevoss directly, contains a question-and-answer round that deals with certain matters.
"I thought a lot about the past year, the condition of the industry and the further development," said Silbert wrote on Twitter shared his letter.
The shareholder letter begins with the expression of pride on the role that the company and Silbert have played as builders in the blockchain industry in the past ten years. Silbert said that DCG invested in more than 200 companies and that the industry had been confronted with many difficulties and hurdles. The letter then shifts in order to discuss the challenges with which the company was faced with last year. Silbert said that bad actors and repeated explosions had devastated the industry, and the company was in trouble.
"Although DCG, our subsidiaries and many of our portfolio companies are not immune to the effects of current turbulence, it was a challenge to question my integrity and my good intentions after I had spent a decade to put everything in this company and the space on being relentlessly on doing things right," wrote Silbert.
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In the Q&A part of Silberts letter it is further explained how DCG interacts with its 100 % subsidiaries and portfolio companies. The letter emphasizes that the DCG subsidiaries are independent companies with their own management teams. The company states that this includes financial and risk management protocols as well as legal and compliance supervision. One of the questions is whether DCG and its subsidiaries mix cash or not.
"No", insists the Q&A part of the letter. "Every 100 % subsidiary of DCG has its own bank accounts, securities accounts and cryptocontes and leads separate books and records."
The Q&A also notes that the relationship from DCG to FTX was a $ 250,000 investment in series B in 2021 and an FTX trade account, "with less than 1 % of our entire trading volume, which is processed on this platform". "Barry has no personal or professional relationship with Sam Bankman-Fried," emphasizes the letter. "Apart from a conversation in the summer of 2022 and some emails at this time, Barry does not remember ever met him, spoken to him or otherwise communicated with him privately."
Alleged relationship from DCG to Three Arrows Capital and Genesis Capital in Q & A session explained, Gemini ends EARN program
The Q&A section of the letter also deals with alleged connections between the Digital Currency Group (DCG) and Three Arrows Capital (3AC), the now dissolved cryptocurrency hedge fund. The letter claims that "DCG never had a relationship with Three Arrows Capital" and that Barry Silbert, CEO, never hit 3AC managers. However, Silbert admitted that there was an "introductory meeting with one of the co -founders" in 2020. While Genesis Capital, a subsidiary of DCG, entertained a trade and loan relationship with 3AC and 3ac with his loan from Genesis, DCG said that "never buying or selling sales of GBTC or other investments" with the bankruptcy craypto.
The letter also deals with the reasons for the decision of DCG to take over the bankruptcy claim against 3AC, and what DCG received in exchange for the promissory note of $ 1.1 billion from Genesis Capital. According to the DCG, the repayment is "extremely uncertain" and the company "has no cash, no cryptocurrency or other means of payment for the promissory certificate-DCG has actually taken over the loss of loss of Genesis for the Three Arrows Capital Down loan," said the company in a Q&A section of the letter. Even if it is uncertain what could happen between DCG and Gemini in the near future, Silbert remains optimistic.
According to Silbert's shareholder letter, Gemini sent emails to Earn customers and informed them that the service was officially stopped. "We write to you to tell you that Gemini as a representative in your name has terminated the Master Loan Agreement (MLA) between you and Genesis Global Capital, LLC (Genesis) with effect from January 8, 2023," said twins. "This officially ends the EARN program and Genesis has to return all assets outstanding in the program," says the email. "Existing withdrawal applications are not affected and continue to wait for fulfillment by Genesis," added Gemini.
What do you think about the reaction of the CEO of the Digital Currency Group, Barry Silbert, about the accusations of Geminis CEO, Cameron Winklevoss? Leave your comments below.
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