Gemini CEO Cameron Winklevoss has published another open letter on Twitter, addressed to the board members of 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), and claims that DCG orchestrated a “campaign of lies” in order 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 in charge.
Gemini and Digital Currency Group Dispute Continues With Another Open Letter
About a week ago, Bitcoin.com News reported on an open letter from Cameron Winklevoss, co-founder of the Gemini crypto exchange, to Digital Currency Group (DCG) CEO Barry Silbert. In the letter, Winklevoss called on Silbert to address liquidity issues between Gemini and DCG subsidiary firm Genesis Global Capital. Winklevoss, the Gemini executive, alleged that DCG owes $1.675 billion to Genesis’ lending arm. However, Silbert strongly disputed Winklevoss’s statements after the letter was made public.
“DCG did not borrow $1.675 billion from Genesis,” Silbert tweeted at the time. “DCG has never missed an interest payment to Genesis and is current on all loans outstanding; the next loan maturity is May 2023.” After Silbert’s statement, Winklevoss continued to call on Silbert and DCG to take action, and set a deadline for DCG to respond by Jan. 8, 2023. It’s unclear whether DCG or Silbert made any attempts to resolve the issue with Gemini, but the open letter sent to DCG’s board suggests that no agreements were reached during that time frame.
In the open letter to the board members of DCG, Winklevoss alleges that Genesis loaned $2.36 billion to the now-bankrupt crypto hedge fund Three Arrows Capital (3AC). According to Winklevoss, after the funds were reportedly liquidated, “Genesis was left with a loss of at least $1.2 billion.” “At this point, Barry Silbert had two legitimate options: restructure the Genesis loan book (inside or outside of bankruptcy court) or fill the $1.2 billion hole,” Winklevoss opined. “He did neither.” The Gemini co-founder claims that DCG and Genesis actively made “false statements and misrepresentations” regarding the supposed hole and financial situation of Genesis.
Winklevoss’s open letter insists:
They did so in an effort to mislead lenders into believing that DCG had absorbed massive losses that Genesis incurred from the Three Arrows Capital (3AC) collapse and induce lenders to continue making loans to Genesis. By lying, they hoped to buy time to dig themselves out of the hole they created.
The open letter from the Gemini co-founder generated a significant response after it was made public on Twitter. As of the time of writing, however, Silbert, an executive with DCG, has not responded to Winklevoss’s allegations as he did the previous week. “It’s never a good sign when a CEO writes an open letter to a [third] party with whom they are transacting at this level,” one individual commented on Winklevoss’s letter to the DCG board members. “Good luck to the everyday investors caught up in this. Hopefully, every high-paid person accountable takes responsibility [and] it’s not a finger-pointing contest,” the individual added.
“Do you know that there are courts these days? Just file a lawsuit instead of these stupid letters on Twitter,” another person tweeted.