Key Takeaways
- Gemini co-founder Cameron Winklevoss published an open letter addressed to the Digital Currency Group board today.
- Winklevoss called on the board to oust Barry Silbert as DCG CEO.
- He claimed Silbert “carefully crafted a campaign of lies” around Genesis’ financial health to trick lenders into providing more funds to the company.
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Gemini made a new move against Digital Currency Group today when co-founder Cameron Winklevoss called on the company’s board to fire Barry Silbert.
“A Campaign of Lies”
The tension between Gemini and DCG is reaching new levels.
In an open letter published today on Twitter, Gemini co-founder Cameron Winklevoss called for the Digital Currency Group board to remove Barry Silbert as company CEO.
Winklevoss accused Silbert, DCG, and Genesis of defrauding 340,000 Gemini Earn users. According to Winklevoss, the group made false statements about Genesis’ financial health and solvency in order to induce lenders into providing new loans to the company.
The four-page letter gives a timeline of DCG’s supposed lies and misrepresentations, starting with Genesis liquidating Three Arrows Capital in June 2022, which resulted in a $1.2 billion loss for the crypto lending company. Winklevoss alleges that, starting July, “Barry, DCG, and Genesis embarked on a carefully crafted campaign of lies to make Gemini, Earn users, and other lenders believe that DCG had injected $1.2 billion of actual support into Genesis.”
This is the second time Winklevoss pens an open letter on the matter of Genesis and Gemini. On January 2 he accused Silbert of engaging in “bad faith stall tactics” and of refusing to get in a room with Gemini representatives to resolve Genesis’ liquidity crisis.
Genesis is a crypto lending company and a subsidiary of Digital Currency Group. The firm paused redemptions and new loan originations on November 16, citing “unprecedented market turmoil” due to the FTX collapse. As a result, Gemini was forced to halt its Earn Program, which relied on Genesis to provide lending services to Gemini customers. Winklevoss has previously claimed that Genesis owes Gemini Earn customers over $900 million.
Disclaimer: At the time of writing, the author of this piece owned BTC, ETH, and several other crypto assets.
