Barry Silbert, founder and chief executive officer of the Digital Currency Group (DCG), wrote to his shareholders on Tuesday to provide more information about the financial relationship with its crypto lending subsidiary Genesis Global Capital. This follows speculation the company is in financial difficulties and accusations by Cameron Winklevoss, the co-founder of crypto exchange Gemini, who says the company made false statements.
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Fast facts
- Silbert’s letter said DCG owes its crypto lender Genesis Global Capital US$447.5 million and 4,550 BTC (US$78 million) that are due in May, and is caught up on all interest payments and outstanding loans. It says DCG borrowed from Genesis Global Capital “on an arm’s length basis” and priced at prevailing market interest rates.
- Genesis Global Capital halted withdrawals in November following the collapse of FTX. Subsequently, Winklevoss’s Gemini paused withdrawals in its interest-bearing Earn Program because Genesis Global Capital was its trading partner for the service. Gemini’s Earn Program officially shutdown Tuesday.
- Winklevoss has claimed his Gemini Earn customers are owed US$900 million by Genesis and in his latest Twitter comments on Tuesday accused Silbert and DCG of fraud. He also asked the Board of DCG to remove Silbert as CEO.
- “This is another desperate and unconstructive publicity stunt from [Cameron Winklevoss] to deflect blame from himself and Gemini, who are solely responsible for operating Gemini Earn and marketing the program to its customers,” DCG’s official Twitter handle posted Tuesday in response to Winklevoss.
- Silbert’s letter to shareholders did not address Winklevoss directly, nor his accusations of fraud.
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