Key Points: Gemini CEO Cameron Winklevoss made harsher allegations in the DCG’s most recent open letter.
Mr. Winklevoss also explained the origin of the current problem to Genesis.
Tensions between Gemini, DCG/Genesis and Gemini grew after Barry Silbert, Gemini CEO, made a “ultimatum”, asking that DCG and its subsidiary Genesis resolve the situation as soon as possible. There are liquidity problems at the moment. Genesis was believed to be insolvent after it stopped withdrawals starting in mid-November 2022, a few days after FTX went under. Genesis’ parent company, Digital Currency Group, (DCG), was also insolvent when it restricted withdrawals starting in mid-November 2022, just days after FTX went bankrupt. Genesis’ CEO responded by stating in a January 4 letter to investors that an “ultimatum” was required from a $900 million creditor, Gemini exchange. He demanded a solution by 8/08.
After liquidating Three Arrows Capital collateral, Genesis still lost $1.2 Billion. Barry Silbert decided to ignore the loss in order to maintain a solid business image.
DCG, however, claimed that it had pumped funds into Genesis to offset losses. The pledge between the two parties is a loan agreement with a 1% annual rate of interest and a term to 2032. DCG does NOT deposit any new coins into Genesis.
Gemini was also informed by Genesis personnel that the situation is under control.
Genesis is willing to give so much money Three Arrows Capital because Three Arrows Capital, another subsidiary of DCG operations is one of the key units putting money in GBTC stock generated Grayscale by Grayscale. This is inflating Grayscale’s assets value and beautifying DCG.
DCG/Genesis also intentionally falsified loan books to improve its financial image.
Gemini CEO, Mr. Winklevoss concluded the letter by stating Barry Silbert was not fit to lead the Digital Currency Group because of flagrant lies and fraud. DCG’s board must remove Mr. Silbert from the CEO role and replace him by another CEO who is more willing to talk to creditors and solve the problem. Mr. Barry Silbert, Digital Currency Group and Genesis have not yet replied to the update. We encourage you to do your own research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comChubbiCoincu News