The crypto neighborhood woke as much as one other drama-filled day after the Digital Forex Group (DCG) chief’s reflection went improper. DCG chief Barry Silbert penned a letter to the shareholders on Jan. 10, reflecting on the state of the crypto market and the rising FUD across the firm. DCG is the father or mother firm of Genesis World Capital, a crypto lending agency and Grayscale, the world’s main crypto asset supervisor.
Within the letter, Silbert addressed the rising points round DCG and its subsidiaries owing to the bear market and FTX contagion. He stated that unhealthy actors and the implosion of main crypto firms have wreaked havoc on the business and famous that “DCG and plenty of of our portfolio firms aren’t proof against the results of the current turmoil.”
I’m extremely happy with the position that DCG & I’ve performed as pioneers & builders over the previous decade. We’ve invested in >200 firms which have developed & formed the business, we’ve helped construct the primary publicly-quoted BTC fund, the most important asset supervisor within the area..(2/10)
— Barry Silbert (@BarrySilbert) January 10, 2023
Within the latter half of the letter, Silbert addressed a number of the raging questions round its relationship with FTX, the mortgage settlement with Genesis and extra. He stated that support Genesis had a “buying and selling and lending relationship” with Three Arrows and had invested $250,000 in FTX’s Collection B funding spherical in July 2021. DCG additionally borrowed $500 million in USD between January and Might 2022 at rates of interest of 10%-12%.and at the moment owes Genesis Capital $447.5 million in USD and 4,550 Bitcoin (BTC) price $78 million which matures in Might 2023.
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Nonetheless, what puzzled the crypto neighborhood extra was the truth that Silbert averted addressing Cameron Winklevoss’ accusations that got here simply hours earlier than his letter. Winklevoss penned an open letter to the board of DCG on Jan. 10, saying CEO Barry Silbert was “unfit” to run the corporate. He additionally accused Silbert of defrauding clients and hiding behind attorneys. Genesis reportedly owes $900 million to Gemini.
One person on Twitter wrote that the letter is a sign that individuals may not be getting their a reimbursement. One other person questioned Silbert’s techniques for getting GBTC shares by promoting borrowed BTC and wrote:
“So that you borrowed Bitcoins, bought them, and purchased GBTC shares? Undecided the way you “hedge” GBTC lengthy positions with Bitcoins in any other case.”
Different members of the crypto neighborhood accused Silbert of deflecting the allegations at hand and likewise called the letter a “PR tactic.”
Laymen phrases! I am Rekt and may’t pay @cameron @tyler @Gemini however I did some neat issues alongside the way in which! https://t.co/8ZzrE5KIyZ
— KingKong (@KingKon43801491) January 10, 2023
A number of customers went on to compare his techniques to that of Terraform Labs co-founder Do Kwon, whereas others speculated that the letter hinted at a attainable firing for Silbert and that he would possibly lose his job within the coming weeks.
