Winklevoss twins’ Gemini Escalates Dispute with DCG: ‘Barry Silbert is Unfit as CEO’

• In an open letter, Gemini co-founder has called on DCG shareholders to remove Barry Silbert as CEO for allegedly defrauding Gemini’s earn users.
• Cameron Winklevoss claims that DCG did not give Genesis operating capital after it lost money in 3AC’s collapse.

Cameron Winklevoss, co-founder of the cryptocurrency exchange Gemini, has called on the shareholders of Digital Currency Group (DCG) to remove Barry Silbert as CEO. In a letter to the board of directors, Winklevoss accused Silbert of fraud and mismanagement, and said that he is unfit to lead the company.

Winklevoss’s letter comes after a series of controversies involving DCG and its subsidiaries. In January, Genesis, a DCG subsidiary, reportedly lost $1.2 billion due to the collapse of the cryptocurrency hedge fund Three Arrows Capital (3AC). Gemini is a client of Genesis, and it lent the company $900 million to generate yields for its interest-bearing Gemini Earn accounts.

Winklevoss alleges that Silbert and DCG misled Gemini about Genesis’ financial condition. He claims that they falsely told Gemini that DCG had injected $1.2 billion into Genesis to shore up its balance sheet. In reality, DCG only entered into a 10-year promissory note with Genesis, which does not provide any immediate cash infusion.

Winklevoss also alleges that Silbert and DCG have engaged in “bad faith stalling tactics” in their efforts to repay Gemini’s $900 million loan. He says that they have refused to provide Gemini with information about Genesis’ financial condition, and that they have not made any meaningful progress towards repaying the loan.

As a result of these allegations, Winklevoss is calling for Silbert’s removal as CEO of DCG. He believes that Silbert is unfit to lead the company, and that he has put Gemini and its users at risk.

In response to Winklevoss’s letter, Silbert denied the allegations of fraud and mismanagement. He said that DCG has never missed an interest payment to Genesis, and that it is current on all loans outstanding. He also said that DCG delivered a proposal to Genesis and its advisors on December 29th, but that he has not received any response.

The dispute between Gemini and DCG is likely to have a significant impact on the cryptocurrency industry. Gemini is one of the largest cryptocurrency exchanges in the world, and its decision to terminate its relationship with Genesis could have a ripple effect throughout the industry.

The outcome of this dispute will also be closely watched by investors. DCG is one of the largest cryptocurrency investment firms in the world, and its financial stability is important to the entire industry. If DCG is found to have engaged in fraud or mismanagement, it could have a significant impact on the price of cryptocurrencies.

It remains to be seen whether Winklevoss will be successful in his efforts to have Silbert removed as CEO of DCG. However, his letter has certainly raised serious questions about Silbert’s leadership, and it has put DCG under a great deal of scrutiny.