Barry Silbert, CEO of Digital Currency Group (DCG), released a statement in which he discusses the current difficulties of his company. At the same time, Cameron Winklevoss, the co-founder of the Gemini exchange, reiterated his accusations against DCG and its subsidiary Genesis.
The CEO of Digital Currency Group speaks out
While his business is in turmoil, Barry Siblert, the CEO and founder of Digital Currency Group (DCG) published a letter addressed to the shareholders of the groupto comment on the current situation:
I’ve been reflecting quite a bit about the past year, the state of the industry and where things go from here.
Here is an update to address those reflections, other developments and some speculation about @DCGco (1/10)https://t.co/xEohthubvD
— Barry Silbert (@BarrySilbert) January 10, 2023
DCG owns shares in more than 200 companies in the cryptocurrency ecosystemand the holding company is notably known for being at the head of the CoinDesk media, Grayscale and Genesis.
It is the financial difficulties of this last actor, which cast doubt on the overall health of the group, but Barry Silbert explains that each company is independent “with their own management teamsand bank accounts. Nevertheless, he recognizes that these are not “not immune to the effects of the current turmoil» :
“On the other hand, this last year has been the most difficult of my life, both personally and professionally. Bad actors and repeated outbursts have taken their toll on our industry, with ripple effects that stretch far and wide. »
This speech comes just after Cameron Winklevoss, the co-founder of Gemini, reiterated his accusations of fraud in a new open letterafter a first release last week:
Earn Update: An Open Letter to the Board of @DCGco pic.twitter.com/eakuFjDZR2
— Cameron Winklevoss (@cameron) January 10, 2023
While Cameron Winklevoss advances verbatim that Genesis and DCG “conspired to make false statementsto Gemini and its Earn product customers, Barry Silbert did not mention the platform in his letter.
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Relations with FTX clarified
As with the many cases that punctuate this bear market, it can be difficult to separate things between what is rumor and factual information. Nevertheless, Barry Silbert returned to his relationship with Sam Bankman-Fried (SBF), while the co-founder of Three Arrows Capital had also made accusatory remarks last week.
DCG performed a $250,000 investment in FTX in July 2021, and less than 1% of its trading volume was conducted on the platform. The CEO of the holding would also have no special relationship with SBF:
“Apart from a conversation in the summer of 2022 and a few emails at the time, Barry does not recall ever meeting, speaking or communicating privately with him. »
Furthermore, if Genesis was tied to Alameda Research through loans and business relationships, this would not have been the case with DCG. While Genesis is struggling, DCG owes him $447.5 million and 4,550 BTCthrough a loan expiring next May.
In view of recent news, if Digital Currency Group manages to emerge from the current crisis, it is not certain that this is the case for all the companies in which it owns shares.
👉 On the same subject – US authorities are investigating the financial operations of Digital Currency Group (DCG)
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Source: Digital Currency Group
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
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