Gemini CEO Cameron Winklevoss has published another open letter on Twitter addressed to the board members of the Digital Currency Group (DCG). In the letter, Winklevoss accuses DCG and CEO Barry Silbert of making poor decisions with the now-defunct crypto hedge fund Three Arrows Capital (3AC), claiming that DCG orchestrated a "campaign of lies" to deceive Gemini and Earn users into thinking everything was fine. Winklevoss is demanding that the DCG board remove Silbert from his role as CEO, as Gemini believes there is “no path forward” with Silbert at the helm. The dispute between Gemini and Digital Currency...
Gemini CEO Cameron Winklevoss has published another open letter on Twitter addressed to the board members of the Digital Currency Group (DCG). In the letter, Winklevoss accuses DCG and CEO Barry Silbert of making poor decisions with the now-defunct crypto hedge fund Three Arrows Capital (3AC), claiming that DCG orchestrated a "campaign of lies" to deceive Gemini and Earn users into thinking everything was fine. Winklevoss is demanding that the DCG board remove Silbert from his role as CEO, as Gemini believes there is “no path forward” with Silbert at the helm.
About a week ago, Bitcoin.com News reported via an open letter from Gemini crypto exchange co-founder Cameron Winklevoss to Digital Currency Group (DCG) CEO Barry Silbert. In the letter, Winklevoss called on Silbert to take action Liquidity problems between Gemini and DCG subsidiary Genesis Global Capital. Winklevoss, Gemini's chief executive, claimed DCG owed $1.675 billion to Genesis' lending arm. However, Silbert strongly disputed Winklevoss' statements after the letter was made public.
“DCG did not borrow $1.675 billion from Genesis,” Silbert said tweeted at that time. "DCG has never missed an interest payment to Genesis and is current on all outstanding loans; the next loan due date is May 2023." Following Silbert's statement, Winklevoss continued to call on Silbert and DCG to take action, setting a deadline for DCG to respond by January 8, 2023. It is unclear whether DCG or Silbert made any attempts to resolve the issue with Gemini, but the open letter to the DCG board suggests that no agreements were reached during that time frame.
Earn Update: An open letter to the board of @DCGco pic.twitter.com/eakuFjDZR2
– Cameron Winklevoss (@cameron) January 10, 2023
In the open letter Winklevoss claims to DCG board members that Genesis loaned the now-bankrupt crypto hedge fund $2.36 billion Capital with three arrows (3AC). According to Winklevoss, Genesis was left with a loss of at least $1.2 billion after the funds were liquidated. "At that point, Barry Silbert had two legitimate options: restructure Genesis' loan book (in or out of bankruptcy court) or fill the $1.2 billion hole," Winklevoss said. “He did neither.” The Gemini co-founder claims that DCG and Genesis have been actively making “false statements and misrepresentations” regarding the alleged hole and Genesis’ financial situation.
Winklevoss's open letter insists:
They did this to mislead lenders into believing that DCG had absorbed the massive losses Genesis suffered from the collapse of Three Arrows Capital (3AC) and to induce lenders to continue lending to Genesis. By lying, they hoped to buy time to dig themselves out of the hole they had created.
The open letter from the Gemini co-founder received a great response after it was published on Twitter. However, at the time of writing, Silbert, a senior executive at DCG, has not responded to Winklevoss' allegations as he did the previous week. “It's never a good sign when a CEO writes an open letter to a [third] party they do business with at that level,” a person commented to the letter from Winklevoss to the DCG board members. "Good luck to the everyday investors affected by this. Hopefully every highly paid person in charge takes responsibility [and] it's not a finger-pointing contest," the person added.
"Do you know there are courts these days? Just file a lawsuit instead of those stupid letters on Twitter," another person tweeted.
What do you think about Gemini CEO Cameron Winklevoss' open letter to DCG board members? Let us know your thoughts on this topic in the comments section below.
Photo credit: Shutterstock, Pixabay, WikiCommons
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