Cameron Winklevoss – one half of the Winklevoss Twins which run the digital currency exchange Gemini in New York – has penned a letter calling for the resignation of Barry Silbert, the man who runs the Digital Currency Group (DCG).
Cameron Winklevoss to Barry Silbert: Resign!
Cameron stated that Silbert engaged in deceptive and fraudulent tactics during his tenure as head of his organization. The feud between the two began when the now defunct crypto exchange FTX collapsed and entered bankruptcy proceedings. Genesis Trading – a division of DCG – had lots of money tied up with FTX, which inherently caused problems for Gemini Earn, the staking division of the New York trading platform.
Genesis ultimately halted withdrawals for all customers. This locked up all funds, meaning customers – neither retail-based nor institutional – could gain access to their money. This included Gemini, and both Cameron and his brother Tyler claim the company owes their firm more than $900 million at the time of writing.
This money could ultimately go towards remedying the situations of Earn users. Cameron’s letter says that all these customers have been “defrauded” by Silbert, and the document calls for the executive to instantly vacate his post. The letter states:
There is no path forward [so] long as Barry Silbert remains CEO of DCG. He has proven himself unfit to run DCG and unwilling and unable to find a resolution with creditors that is both fair and reasonable.
Silbert is fighting back, claiming the Winklevoss Twins have made every attempt to deflect blame and shift responsibility onto other parties, himself included. A spokesman for the DCG has said:
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.
The spokesman also stated that Gemini is now actively engaging in a “public media campaign” against the Digital Currency Group and Silbert despite private talks and unpublicized attempts to work out deals and negotiations. The anonymous figure also mentioned:
We remain focused on finding a solution for our borrowing and lending intermediation business and reaching the best outcome for all affected Genesis lending and Gemini Earn clients.
Prior to this letter, Cameron had penned a separate one claiming that Silbert had engaged in “bad faith tactics.” He stated in that document that Silbert had misrepresented liabilities it had taken on from Genesis following the collapse of Three Arrows Capital, which filed bankruptcy in the summer of 2022.
Financial Falsities?
The letter mentioned:
Beginning in early July 2022, Barry, DCG, and Genesis embarked on a carefully crafted campaign of lies to make Gemini, Earn users, and other lenders believe that DCG had injected $1.2 billion of actual support into Genesis.
