Gemini Co-Founder Accuses DCG, Genesis of Fraud, Silbert Unfit to Lead

• Cameron Winklevoss, co-founder of Gemini, has released an extensive letter accusing Digital Currency Group (DCG), Genesis, and its key personnel of fraud.
• The letter alleges that the $2.8 billion crypto lending arm of Genesis Trading, Genesis Global Capital LLC, realized losses of at least $1.2 billion and instead of taking steps to restructure and protect users, the fund fraudulently marked a 10-year promissory note down as a current asset.
• The letter also claims that Barry Silbert is unfit to run DCG as he is apparently responsible for passing on the risk to the users of Gemini Earn, with greed being the driving factor behind this decision.

Cameron Winklevoss, the co-founder of Gemini, has recently released an extensive letter alleging fraud committed by Digital Currency Group (DCG), Genesis, and its key personnel, including Barry Silbert. The letter claims that after Genesis Global Capital LLC, the $2.8 billion crypto lending arm of Genesis Trading, realized losses of at least $1.2 billion in the wake of cryptocurrency hedge fund Three Arrows Capital’s collapse, instead of taking action to restructure and protect users, the fund attempted to defraud others into believing that $1.2 billion of working capital had been injected into the company. To achieve this, the firm allegedly marked a 10-year promissory note down as a current asset, which Winklevoss noted should not have been done as “A promissory note with a principal repayment due in 10 years falls outside the definition of a ‘current asset’ by a country mile.”

The letter also claims that Barry Silbert and other key personnel of DCG and Genesis were responsible for passing on the risk to the users of Gemini Earn. Winklevoss alleges that this decision was driven by greed, as the crypto hedge fund was reportedly redirecting investment into Grayscale Investments’s GBTC, which limited the growing discount of the Trust.

Finally, the letter concludes with a statement that claims that Barry Silbert is unfit to run DCG, as he has proven himself “unwilling and unable to fulfill his fiduciary duty to protect the interests of DCG and its stakeholders.” This letter has certainly raised eyebrows in the cryptocurrency and investing community, and only time will tell how this story will unfold.