The founder of one of the biggest crypto exchanges in the world is urging Digital Currency Group (DCG) to fire its CEO Barry Silbert over issues surrounding Genesis.
Last week, Gemini founder Cameron Winklevoss wrote an open letter, posted to social media, blaming DCG founder Silbert for the collapse of the Gemini Earn program.
Under the Earn program, Gemini partnered up with crypto lender Genesis to provide traders with up to 8% returns on their holdings. However, earlier this month Genesis announced that FTX’s collapse greatly affected its finances and it could no longer pay out investors of Gemini’s Earn program. Genesis’s parent company is DCG.
In another open letter posted to Twitter, Winklevoss addresses the board of directors at DCG.
Earn Update: An Open Letter to the Board of @DCGco pic.twitter.com/eakuFjDZR2
— Cameron Winklevoss (@cameron) January 10, 2023
As in last week’s letter, Winklevoss pins the blame for Genesis’s failures on Silbert.
“In June 2022, the music stopped. 3AC collapsed, laying bare the poisonous fruits of this radioactive trade. Instead of stepping up to solve this self-created problem, and despite having earned more than a billion dollars in fees — all at the expense of Genesis lenders — Barry refused to take responsibility. Instead, he resorted to committing fraud to protect his ill-gotten gains.”
Ultimately, Winklevoss asks the DCG board to fire Silbert in order to maintain some sort of path forward.
“The Path Forward. For all the reasons mentioned above, there is no path forward as 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. As a result, Gemini, acting on behalf of 340,000 Earn users, requests that the Board remove Barry Silbert as CEO, effective immediately, and install a new CEO, who will right the wrongs that occurred under Barry’s watch.
Genesis lenders, including Earn users, have been seriously harmed and deserve a resolution for the recovery of their assets. I am confident that with new management at DCG, we can all work together to achieve a positive, out-of-court solution that will provide a win-win outcome for all, including DCG shareholders.”
Unlike last week, Silbert himself has not responded. Instead, the DCG Twitter account defended Silbert and their group.
“This is another desperate and unconstructive publicity stunt from [Winklevoss] to deflect blame from himself and Gemini, who are solely responsible for operating Gemini Earn and marketing the program to its customers.
We are preserving all legal remedies in response to these malicious, fake, and defamatory attacks.
DCG will continue to engage in productive dialogue with Genesis and its creditors with the goal of arriving at a solution that works for all parties.”
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