Gemini founder Winklevoss calls DCG CEO Barry Silbert unfit and unreasonable, demands new management
|- Gemini co-founder Cameron Winklevoss claims that DCG and Genesis organized a carefully crafted campaign of lies.
- Last week, Winklevoss had given Silbert the deadline of January 8 to recover Gemini Earn users' funds.
- Winklevoss called for the removal of Barry Silbert, stating there is no path forward as long as he remains the DCG CEO.
Gemini Earn users took collateral damage after Genesis Global Capital halted its withdrawals in November 2022. Since then, Gemini founder Cameron Winklevoss has been attempting to recover the assets stuck with Genesis by coalescing with Barry Silbert, CEO of Digital Currency Group (DCG), Genesis' parent company.
Gemini founder takes on Silbert
Gemini had over 340,000 users invest in its Earn program that it was operating in partnership with Genesis Global Capital. However, following the collapse of cryptocurrency exchange FTX, Genesis halted withdrawals, effectively leaving Gemini Earn users' funds, worth approximately $900 million, stuck in the platform.
Winklevoss attempted to work out the problem with Barry Silbert, but following the failure to make it happen, Gemini CEO has gone all out in his open letter on January 10. As per Winklevoss, Silbert, along with Genesis, has defrauded the Gemini Earn users by issuing misleading statements.
Citing a tweet from July 6 where Silbert stated that DCG had the capital to operate following cryptocurrency hedge fund Three Arrows Capital's (3AC) bankruptcy was untrue and that the company hadn't given any funding to Genesis to make up for 3AC losses.
Earn Update: An Open Letter to the Board of @DCGco pic.twitter.com/eakuFjDZR2
— Cameron Winklevoss (@cameron) January 10, 2023
Earn Update: An Open Letter to the Board of @DCGco pic.twitter.com/eakuFjDZR2
— Cameron Winklevoss (@cameron) January 10, 2023
The open letter further claimed that Genesis had perpetrated a carefully crafted campaign of lies wherein they conducted accounting fraud as well. According to Winklevoss,
"This [accounting fraud] made the Genesis balance sheet appear healthier than it actually was, fraudulently inducing lenders to continue making loans."
Winklevoss wants DCG CEO out
Towards the end of the letter, Gemini's founder asked for the removal of the crypto venture capital company's head, calling Barry Silbert unfit to run DCG.
Winklevoss added that Silbert was not only unwilling but also unable to find a resolution with creditors. He stated that there was no path forward for as long as Silbert remained the CEO.
Winklevoss stated that new management would be far more capable of recovering Gemini Earn users' funds as they would be willing to work together. Barry Silbert has not made any comment in response to the letter at the time of writing.
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