The crypto neighborhood woke to a different drama-filled day after the Digital Foreign money Group (DCG) chief’s letter to shareholders went flawed. DCG CEO, Barry Silbert, penned a letter to the shareholders on Jan. 10, reflecting on the state of the crypto market and the rising worry, uncertainty and doubt (FUD) across the firm. DCG is the guardian firm of crypto lending agency Genesis World Capital 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 mentioned that dangerous actors and the implosion of main crypto firms had wreaked havoc on the business. He famous, “DCG and lots of of our portfolio firms aren’t proof against the results of the current turmoil.”
I’m extremely happy with the function 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 biggest asset supervisor within the house..(2/10)
— Barry Silbert (@BarrySilbert) January 10, 2023
Within the latter half of the letter, Silbert addressed some raging questions on DCG’s relationship with FTX, the mortgage settlement with Genesis and extra. He mentioned that Genesis had a “buying and selling and lending relationship” with Three Arrows Capital and had invested $250,000 in FTX’s Collection B funding spherical in July 2021. DCG additionally borrowed $500 million between January and Could 2022 at rates of interest of 10%-12% and at the moment owes Genesis $447.5 million and 4,550 Bitcoin (BTC), value $78 million, which matures in Could 2023.
Associated: It’s going to be OK: DCG disaster seemingly gained’t ‘embody plenty of promoting’ — Novogratz
Nevertheless, what puzzled the crypto neighborhood extra was that Silbert prevented addressing accusations by Cameron Winklevoss 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 prospects and hiding behind legal professionals. Genesis reportedly owes Gemini $900 million.
One Twitter person wrote that the letter signifies that individuals may not get their a reimbursement. One other person questioned Silbert’s ways of shopping for GBTC shares by promoting borrowed BTC and wrote:
“So that you borrowed Bitcoins, offered them, and purchased GBTC shares? Unsure the way you “hedge” GBTC lengthy positions with Bitcoins in any other case.”
— KingKong (@KingKon43801491) January 10, 2023