- Cameron Winklevoss claims that DCG did not give Genesis operating capital after it lost money in 3AC’s collapse
- Winklevoss wants the DCG board to remove Barry Silbert as its Chief Executive Officer
Cameron Winklevoss, the founder of Gemini, has issued another open letter on Genesis, a prominent crypto-lending firm. But this time around, the letter addresses the Digital Currency Group’s (DCG) Board. The letter claims that Barry Silbert – the current CEO of DCG – has been misleading and lying to Gemini, its Earn users, and other lenders. This is particularly with regard to Genesis’ accounting books.
DCG gave no pennies to Genesis
The founder highlighted that Genesis had lost nearly $1.2 billion after the collapse of 3AC, a Singapore-based hedge fund. Post this, it was announced that DCG had “injected $1.2 billion” to support Genesis’ capital. However, Winklevoss claimed that this never took place in actuality. Instead, DCG had “entered into a promissory note with the crypto-lending platform.
The Gemini head claims that this note did not provide Genesis with an “immediate liquidity position or make its balance sheet solvent”. He said,
“In reality, DCG had not ensured that Genesis had the capital to operate. In fact, DCG hadn’t given Genesis so much as a penny of actual funding to make up for the 3AC losses. Instead, DCG entered into a 10-year promissory note with Genesis at an interest rate of 1% – due in 2032.“
The story is still developing.
