Barry Silbert’s letter to shareholders came just hours after Cameron Winklevoss wrote an open letter accusing him of defrauding customers.
The crypto community woke to another drama-filled day after the Digital Currency Group (DCG) chief’s letter to shareholders went wrong. DCG CEO, Barry Silbert, penned a letter to the shareholders on Jan. 10, reflecting on the state of the crypto market and the growing fear, uncertainty and doubt (FUD) around the company. DCG is the parent company of crypto lending firm Genesis Global Capital and Grayscale, the world’s leading crypto asset manager.
In the letter, Silbert addressed the growing issues around DCG and its subsidiaries owing to the bear market and FTX contagion. He said that bad actors and the implosion of leading crypto companies had wreaked havoc on the industry. He noted, “DCG and many of our portfolio companies are not immune to the effects of the present turmoil.”
I’m incredibly proud of the role that DCG & I have played as pioneers & builders over the past decade. We’ve invested in >200 companies that have developed & shaped the industry, we’ve helped build the first publicly-quoted BTC fund, the largest asset manager in the space..(2/10)
— Barry Silbert (@BarrySilbert) January 10, 2023
In the latter half of the letter, Silbert addressed some raging questions about DCG’s relationship with FTX, the loan agreement with Genesis and more. He said that Genesis had a “trading and lending relationship” with Three Arrows Capital and had invested $250,000 in FTX’s Series B funding round in July 2021. DCG also borrowed $500 million between January and May 2022 at interest rates of 10%-12% and currently owes Genesis $447.5 million and 4,550 Bitcoin (BTC), worth $78 million, which matures in May 2023.
However, what puzzled the crypto community more was that Silbert avoided addressing accusations by Cameron Winklevoss that came just hours before his letter. Winklevoss penned an open letter to the board of DCG on Jan. 10, saying CEO Barry Silbert was “unfit” to run the company. He also accused Silbert of defrauding customers and hiding behind lawyers. Genesis reportedly owes Gemini $900 million.
“So you borrowed Bitcoins, sold them, and bought GBTC shares? Not sure how you “hedge” GBTC long positions with Bitcoins otherwise.”
— KingKong (@KingKon43801491) January 10, 2023
Sourced from cointelegraph.com.
Written by Prashant Jha on 2023-01-14 05:34:51.