On Jan. 10, one of the co-founders of the crypto exchange Gemini, Cameron Winklevoss, publicly called for the removal of the DCG CEO, Barry Silbert, in an open letter addressed to the crypto investment firm’s board of directors.
The open letter published on Jan. 10 serves as a formal request for the board to consider removing Silbert as CEO, citing concerns about his management of the company and the direction in which it is heading. Winklevoss’ letter does not provide specific examples or details to support the claims about Silbert’s management style.
Winklevoss accused Silbert of defrauding investors:
“I’m writing to let you know that Gemini and more than 340,000 Earn users have been defrauded by Genesis […] together with its parent company Digital Currency Group, Inc. (DCG), its founder and CEO Barry Silbert, and other key personnel.”Cameron Winklevoss, Gemini co-founder
Moreover, Winklevoss accused the former Genesis CEO of making a “false and misleading statement” when he claimed that DCG “assumed certain liabilities of Genesis” related to Three Arrows Capital (3AC) to ensure that the firm has “the capital to operate and scale.”
According to the Gemini executive, all DCG did was enter a 10-year promissory note with Genesis at an interest rate of 1% that is due in 2032 — which is “nothing to improve Genesis’s immediate liquidity position or make its balance sheet solvent.”
Digital Currency Group (DCG) is a venture capital firm that invests in the crypto and blockchain space. It operates a portfolio of companies and projects, including CoinDesk and Grayscale Investments, and has investments in various crypto-related firms and projects. The call for Silbert’s removal is a significant development in the crypto and blockchain community, as DCG is one of the most prominent and influential players in the space.
It is worth noting that open letters are a formal way to express concerns or ideas, which are usually addressed to the board of directors, shareholders, or public authorities. It is not common in the business industry to express dissatisfaction with the management. It remains to be seen whether the board of DCG will take Winklevoss’ request seriously and if any action will be taken due to the letter.
Overall, this move by Winklevoss highlights the ongoing tensions and disagreements within the crypto and blockchain space as the industry continues to evolve and mature. The development follows Digital Currency Group’s Genesis Trading lending firm going down alongside FTX and taking the funds deposited onto the Gemini Earn program.
The development comes after recent news that the United States Securities and Exchange Commission and New York authorities are investigating the Digital Currency Group.