• Cameron Winklevoss, CEO of Gemini, has published an open letter accusing Digital Currency Group (DCG) and CEO Barry Silbert of misrepresentation and demanding Silbert resign from his role.
• The letter calls out DCG for its handling of the now-defunct crypto hedge fund Three Arrows Capital (3AC) and claims that DCG orchestrated a “campaign of lies” in order to deceive Gemini and Earn users.
• Winklevoss is demanding that the DCG board remove Silbert from his role as CEO, as Gemini believes “there is no path forward” with Silbert in charge.
Cameron Winklevoss, the CEO of the Gemini cryptocurrency exchange, has written an open letter addressed to the board members of Digital Currency Group (DCG), accusing the company and its CEO, Barry Silbert, of misrepresentation and demanding Silbert resign from his role. The letter, which was published on Twitter, takes aim at DCG’s handling of the now-defunct crypto hedge fund Three Arrows Capital (3AC), and accuses the company of orchestrating a “campaign of lies” in order to deceive users of Gemini and Earn.
In the letter, Winklevoss mentions an issue between Gemini and DCG subsidiary firm Genesis Global Capital, where he alleges that DCG owes $1.675 billion to Genesis’ lending arm. After the letter was made public, Silbert strongly disputed Winklevoss’ statements, tweeting that “DCG did not borrow $1.675 billion from Genesis” and that DCG had never missed an interest payment to Genesis and was current on all loans outstanding.
Despite Silbert’s response, Winklevoss continued to call on Silbert and DCG to take action, and set a deadline for DCG to respond by Jan. 8, 2023. According to the letter, it appears that no agreement between Gemini and DCG was reached during this time frame.
In his latest letter, Winklevoss accuses the DCG board of making poor decisions with 3AC, claiming that Silbert and DCG have “distorted the facts, misled the public, and caused harm to our customers and the cryptocurrency community as a whole”. He also claims that “DCG’s mismanagement of 3AC has caused significant losses to its investors, including Gemini, and has put the reputation of the entire industry at risk”.
Winklevoss is demanding that the DCG board remove Silbert from his role as CEO, as Gemini believes “there is no path forward” with Silbert in charge. He also calls for the DCG board to take responsibility for the “unethical and irresponsible decisions” that were made under Silbert’s tenure, as well as for the board to take action to ensure that similar issues and losses are not repeated in the future.
Given the recent allegations, it remains to be seen whether or not the DCG board will respond to Winklevoss’s demands or if they will continue to stand by Silbert and the decisions that were made while he was in charge. Whatever the outcome, it is clear that the dispute between Gemini and Digital Currency Group is far from over.