Digital Currency Group CEO Barry Silbert Responds to Accusations by Gemini’s Cameron Winklevoss With Shareholders Letter

Barry Silbert, CEO of Digital Currency Group (DCG), has launched a letter to shareholders in response to a current open letter from Gemini CEO Cameron Winklevoss. The letter, issued Tuesday by Winklevoss, requires the DCG board to power Silbert to step down as CEO. Silbert shared his letter on Twitter and stated he had been reflecting deeply over the previous yr on the state of the cryptocurrency trade and its route.

Digital Currency Group CEO Barry Silbert Releases Shareholders Letter

On Tuesday, Digital Currency Group CEO Barry Silbert wrote a letter to shareholders in response to accusations made by Gemini CEO Cameron Winklevoss. Winklevoss had beforehand accused DCG of misrepresentation and known as for Silbert’s resignation as CEO. Silbert’s letter, which doesn’t instantly tackle a few of Winklevoss’ particular allegations, does embody a Q&A session that addresses sure issues.

“I’ve been reflecting fairly a bit in regards to the previous yr, the state of the trade, and the place issues go from right here,” Silbert wrote on Twitter sharing his letter.

The shareholder letter begins off by expressing satisfaction within the function that the corporate and Silbert have performed previously ten years as builders within the blockchain trade. Silbert stated that DCG has invested in additional than 200 corporations and within the early days of the trade, the corporate confronted many difficulties and hurdles. The letter then shifts to debate the challenges confronted by the corporate previously yr. Silbert stated dangerous actors and repeated blow-ups have wreaked havoc on the trade, and the corporate has confronted difficulties consequently.

“Although DCG, our subsidiaries, and many of our portfolio companies are not immune to the effects of the present turmoil, it has been challenging to have my integrity and good intentions questioned after spending a decade pouring everything into this company and the space with an unrelenting focus on doing things the right way,” Silbert wrote.

The Q&Part of Silbert’s letter goes on to clarify how DCG interacts with its wholly-owned subsidiaries and portfolio corporations. The letter stresses that DCG subsidiaries are unbiased corporations with their very own administration groups. The firm particulars that this consists of monetary and danger administration protocols, and authorized and compliance oversight. One of the questions asks whether or not or not DCG and its subsidiaries commingle money.

“No,” the Q&Part of the letter insists. “Each of DCG’s wholly-owned subsidiaries has its own bank accounts, securities accounts, and crypto accounts, and maintains separate books and records.”

The Q&An element additional notes that DCG’s relationship with FTX was a $250K Series B funding in 2021 and an FTX buying and selling account “with less than 1% of all our trading volume transacted on that platform.” “Barry has no personal or professional relationship with Sam Bankman-Fried,” the letter stresses. “Aside from a conversation in the Summer of 2022 and a few emails at the time, Barry does not recall ever meeting, speaking with, or otherwise privately communicating with him.”

DCG’s Alleged Relationship with Three Arrows Capital and Genesis Capital Explained in Q&A Session, Gemini Terminates Earn Program

The Q&A piece of the letter additionally addresses alleged ties between Digital Currency Group (DCG) and Three Arrows Capital (3AC), the now-defunct cryptocurrency hedge fund. The letter asserts that “DCG has never had a relationship with Three Arrows Capital” and that Barry Silbert, CEO, has by no means met the 3AC executives. However, Silbert acknowledged that there had been an “introductory call with one of the co-founders in 2020.” Additionally, whereas Genesis Capital, a subsidiary of DCG, had a buying and selling and lending relationship with 3AC, and 3AC defaulted on its loans from Genesis, DCG said that it “never coordinated purchases or sales of GBTC or any other investments” with the bankrupt crypto hedge fund.

The letter additionally addresses the explanations behind DCG’s determination to tackle the chapter declare towards 3AC and what DCG obtained in trade for the $1.1 billion promissory observe from Genesis Capital. According to DCG, the restoration is “highly uncertain” and the corporate “did not receive any cash, cryptocurrency, or other forms of payment for the promissory note – DCG effectively assumed Genesis’ risk of loss on the Three Arrows Capital loan with no obligation to do so,” the corporate defined in a Q&A piece of the letter. Even although it’s unsure what might occur within the close to future between DCG and Gemini, Silbert stays optimistic.

Following Silbert’s shareholder letter, Gemini despatched out emails to Earn clients, notifying them that the service was formally terminated. “We are writing to let you know that Gemini, acting as agent on your behalf, has terminated the Master Loan Agreement (MLA) between you and Genesis Global Capital, LLC (Genesis), effective as of January 8, 2023,” the e-mail from Gemini stated. “This officially terminates the Earn Program and requires Genesis to return all assets outstanding in the program,” in response to the e-mail. “Existing redemption requests are not impacted and continue to await fulfillment by Genesis,” Gemini added.

What are your ideas on the response from Digital Currency Group’s CEO, Barry Silbert, to the accusations from Gemini’s CEO, Cameron Winklevoss? Leave your feedback beneath.