DCG Slams Cameron Winklevoss, Claims no Relationship with 3AC
Cameron Winklevoss, Gemini CEO, published a Twitter open letter addressing Digital Currency Group (DCG) board member on Tuesday, January 10. Winklevoss accused DCG’s CEO Barry Silbert and their poor investment in Three Arrows Capital (3AC), a crypto hedge that collapsed last year, of making poor decisions.
The Winklevoww twins have also made allegations against DCG for “misrepresenting their financial and whole situation at Genesis.” DCG responded to Cameron Winklevoss, stating that this was a “desperate and unconstructive public stunt” by him trying to distract himself from Gemini.
The Digital Currency Group stated that Cameron and Gemini are responsible for the Gemini Earn product and its marketing to their customers. Gemini Earn was an interest-bearing instrument that was offered by the crypto exchange Gemini. Gemini had deposits of more than $900 million with Genesis Global, a subsidiary of DCG. DCG stated in its Tuesday message:
We will continue to protect all legal remedies as a response to these defamatory, fake, and malicious attacks. DCG will continue to engage with Genesis and its creditors in order to reach a solution that is fair for all.
Winklevoss Asks DCG’s Barry Silbert To Resign
Cameron Winklevoss, in an open letter, demanded that Barry Silbert resign from his position as DCG. In the letter, he accuses Silbert for recklessly lending to 3AC. 3AC exchanged Bitcoin for shares in Grauscale’s Bitcoin Trust product (GBTC).
Winklevoss also claimed that DCG failed report these swaps to be “risky derivative trades”. Instead of presenting them as collateralized loans they presented DCG’s balance sheet to be healthier than it was.
DCG recently published a Q&A that revealed that they own Genesis for $447.5M and 4,550 BTC due May 2023. They also stated that they have never had any relationship (3AC) with Three Arrows Capital (3AC). DCG also stressed that the Genesis promissory note of 1.1 billion due in 2032 is non-callable. This means that DCG will not immediately repay $1.1 billion to Genesis in the event of a possible bankruptcy reorganization.
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