• Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, has written an open letter to the Digital Currency Group’s (DCG) board asking for the removal of the venture capital firm’s CEO Barry Silbert.
• Winklevoss accused DCG and Silbert of defrauding more than 340,000 Gemini and Earn users by falsely claiming that crypto brokerage Genesis Global Trading was solvent and financially stable.
• Following the FTX collapse, Gemini Trust Earn and Genesis have both halted redemptions. Reportedly, around $900 million of Gemini’s customer funds are locked in Genesis.
Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, has issued a sharp rebuke of Digital Currency Group’s (DCG) CEO Barry Silbert in an open letter written to the DCG board. In the letter, Winklevoss accused Silbert and DCG of defrauding more than 340,000 Gemini and Earn users by falsely promoting that Genesis Global Trading, the lending arm of DCG, was solvent and financially stable.
The letter comes amid growing tensions between the two high-profile executives in the wake of the FTX collapse. Following the collapse, Gemini Trust Earn, a high-interest account program offered by Gemini in partnership with Genesis Global Trading, halted redemptions, as did Genesis itself. In a statement on Twitter, Genesis said that the “abnormal withdrawal requests” had exceeded its “current liquidity.” As a result, Gemini’s customer funds, reportedly amounting to $900 million, are now locked in Genesis.
Winklevoss called out Silbert and other executives for lying in an effort to maintain the illusion of solvency in order to “buy time to dig themselves out of the hole they created.” He also alluded to other questionable practices by DCG, saying that their actions “raise serious questions about [their] management and fiduciary duty to its stakeholders.”
This is not the first time Cameron has lashed out at Silbert in an open letter. Just last week, he issued an open letter calling out DCG for their “unethical practices,” especially in light of the FTX collapse. In the letter, Winklevoss demanded that DCG take responsibility for their actions and make things right with their stakeholders.
As tensions continue to mount between the two executives, the open letter serves as a reminder of the importance of transparency and accountability in the cryptocurrency industry. While it remains to be seen what will happen next, one thing is certain – the digital currency sector is ripe for disruption and the two parties will need to find a way to work together in order to move forward.