blockworks.co
Gemini co-founder Cameron Winklevoss called on the board of Digital Currency Group (DCG) to remove CEO Barry Silbert after alleging fraud against DCG and portfolio company Genesis.
Genesis has defrauded Gemini and more than 340,000 of its users, Winklevoss claimed in the open letter, which he tweeted Tuesday morning.
He alleged the fraud to be coordinated between Genesis and parent company DCG, led by CEO Barry Silbert, claiming that they made “false statements and misrepresentations” about Genesis’s solvency and financial health.
“They did so in an effort to mislead lenders into believing that DCG had absorbed massive losses that Genesis incurred from the Three Arrows Capital (3AC) collapse and induce lenders to continue making loans to Genesis,” Winklevoss wrote. “By lying, they hoped to buy time to dig themselves out of the hole they created.”
A DCG spokesperson did not immediately return a request for comment.
The letter claims that Genesis lent nearly $2.4 billion to Singapore-based hedge fund 3AC, which filed for bankruptcy in the middle of last year.
“At this point, Barry Silbert had two legitimate options: restructure the Genesis loan book (inside or outside of bankruptcy court) or fill the $1.2 billion hole,” Winklevoss added. “He did neither.”
This is a developing story and will be updated.
Get the day’s top crypto news and insights delivered to your inbox every evening. Subscribe to Blockworks’ free newsletter now.
Interested in working at Blockworks? We’re hiring journalists, a VP of Sales, and engineers! Check our open positions.
Can’t wait? Get our news the fastest way possible. Join us on Telegram.