DCG CEO, Barry Silbert, in an Open Letter from Cameron Winklevoss published on Twitter was called out for silence since the exchange halted withdrawals. According to The Open letter, users entrusted “more than $900 million to the firm,” and emphasized “the users are not just numbers on a spreadsheet, they are real people,” however, deserve answers. Barry Silbert is therefore requested by the open letter to be available by January 8th for a resolution on how users’ assets can be recovered.
Cameron Winklevoss is the Co-founder at Gemini and in the letter expressed that Barry Silbert has turned deaf on several requests for an engagement and the possible ways to repay users the debt owed them.
“We have done everything we can to engage with you in a good faith and collaborative manner in order to reach a consensual resolution for you to pay back $900 million that you owe, while helping you to preserve your business,” the letter read.
The letter cited three different occasions of reaching out to Barry for solutions, “despite he continued to refuse to get into a room with us to hash out the solution,” the letter said. The different occasions were stated to be December 2nd, 17th, and 25th, 2022. Then, a deadline of January 8th was given for Barry to “publicly commit to working together to solve this problem.”
The letter analyzed that DCG- Digital Currency Group owes Genesis (its subsidiary) an amount equivalent to $1.675 billion and this money is what Genesis owes “Earn users and other creditors.”
According to the letter, Barry used the money for his personal gain and at the expense of creditors “to fuel greedy share buybacks, illiquid venture investments, and kamikaze Grayscale NAV trades that ballooned the fee-generating AUM of your trust.”
Barry Silbert replied to the open letter in a tweet disclaiming that DCG did not borrow the said amount from Genesis and sent a proposal on the 29th of December which is yet to be replied.
It was pointed out to Barry that the “mess” was entirely his making and he can’t hide from it.
DCG is the parent company of Genesis, a crypto lending firm and in November announced it is halting withdrawals.
Genesis is a subsidiary of DCG- Digital Currency Group and halted withdrawals with claims of inability to meet withdrawal requests citing that the FTX event had an impact on the firm. Afterwards, Wall Street Journal in a report revealed that before the announcement by Genesis to halt withdrawals, the firm had attempted an emergency loan worth $1 billion.
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