Barry Silbert, CEO of Digital Foreign money Group (DCG), has launched a letter to shareholders in response to a latest open letter from Gemini CEO Cameron Winklevoss. The letter, issued Tuesday by Winklevoss, requires the DCG board to drive Silbert to step down as CEO. Silbert shared his letter on Twitter and stated he had been reflecting deeply over the previous 12 months on the state of the cryptocurrency business and its route.
Digital Foreign money Group CEO Barry Silbert Releases Shareholders Letter
On Tuesday, Digital Foreign money Group CEO Barry Silbert wrote a letter to shareholders in response to accusations made by Gemini CEO Cameron Winklevoss. Winklevoss had beforehand accused DCG of misrepresentation and known as for Silbert’s resignation as CEO. Silbert’s letter, which doesn’t straight handle a few of Winklevoss’ particular allegations, does embrace a Q&A session that addresses sure issues.
“I’ve been reflecting fairly a bit concerning the previous 12 months, the state of the business, and the place issues go from right here,” Silbert wrote on Twitter sharing his letter.
The shareholder letter begins off by expressing satisfaction in the function that the corporate and Silbert have performed in the previous ten years as builders in the blockchain business. Silbert stated that DCG has invested in greater than 200 companies and in the early days of the business, the corporate confronted many difficulties and hurdles. The letter then shifts to debate the challenges confronted by the corporate in the previous 12 months. Silbert stated unhealthy actors and repeated blow-ups have wreaked havoc on the business, and the corporate has confronted difficulties in consequence.
“Though DCG, our subsidiaries, and plenty of of our portfolio corporations usually are not resistant to the results of the current turmoil, it has been difficult to have my integrity and good intentions questioned after spending a decade pouring every thing into this firm and the area with an unrelenting deal with doing issues the best approach,” Silbert wrote.
Gemini co-founder Cameron Winklevoss (pictured left) and Digital Foreign money Group CEO Barry Silbert (pictured proper).
The Q&Part of Silbert’s letter goes on to clarify how DCG interacts with its wholly-owned subsidiaries and portfolio corporations. The letter stresses that DCG subsidiaries are impartial corporations with their very own administration groups. The corporate particulars that this contains monetary and danger administration protocols, and authorized and compliance oversight. One of many questions asks whether or not or not DCG and its subsidiaries commingle money.
“No,” the Q&Part of the letter insists. “Every of DCG’s wholly-owned subsidiaries has its personal financial institution accounts, securities accounts, and crypto accounts, and maintains separate books and data.”
The Q&A component additional notes that DCG’s relationship with FTX was a $250Okay Collection B funding in 2021 and an FTX buying and selling account “with lower than 1% of all our buying and selling quantity transacted on that platform.” “Barry has no private or skilled relationship with Sam Bankman-Fried,” the letter stresses. “Except for a dialog in the Summer time of 2022 and some emails on the time, Barry doesn’t recall ever assembly, talking with, or in any other case privately speaking with him.”
DCG’s Alleged Relationship with Three Arrows Capital and Genesis Capital Defined in Q&A Session, Gemini Terminates Earn Program
The Q&A piece of the letter additionally addresses alleged ties between Digital Foreign money Group (DCG) and Three Arrows Capital (3AC), the now-defunct cryptocurrency hedge fund. The letter asserts that “DCG has by no means had a relationship with Three Arrows Capital” and that Barry Silbert, CEO, has by no means met the 3AC executives. Nevertheless, Silbert acknowledged that there had been an “introductory name with one of many co-founders in 2020.” Moreover, whereas Genesis Capital, a subsidiary of DCG, had a buying and selling and lending relationship with 3AC, and 3AC defaulted on its loans from Genesis, DCG acknowledged that it “by no means coordinated purchases or gross sales of GBTC or another investments” with the bankrupt crypto hedge fund.
The letter additionally addresses the explanations behind DCG’s resolution to tackle the chapter declare towards 3AC and what DCG obtained in trade for the $1.1 billion promissory observe from Genesis Capital. In keeping with DCG, the restoration is “extremely unsure” and the corporate “didn’t obtain any money, cryptocurrency, or different types of fee for the promissory observe – DCG successfully assumed Genesis’ danger of loss on the Three Arrows Capital mortgage with no obligation to take action,” the corporate defined in a Q&A piece of the letter. Although it’s unsure what might occur in the close to future between DCG and Gemini, Silbert stays optimistic.
Following Silbert’s shareholder letter, Gemini despatched out emails to Earn prospects, notifying them that the service was formally terminated. “We’re writing to let you realize that Gemini, performing as agent in your behalf, has terminated the Grasp Mortgage Settlement (MLA) between you and Genesis International Capital, LLC (Genesis), efficient as of January 8, 2023,” the e-mail from Gemini stated. “This formally terminates the Earn Program and requires Genesis to return all property excellent in this system,” in line with the e-mail. “Present redemption requests usually are not impacted and proceed to await achievement by Genesis,” Gemini added.
What are your ideas on the response from Digital Foreign money Group’s CEO, Barry Silbert, to the accusations from Gemini’s CEO, Cameron Winklevoss? Go away your feedback under.
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