DCG Has Responded to the Allegations About 3AC!
In his full interview, DCG said the group had no connection to Three Arrow Capital, as Cameron Winklevoss said.
On Tuesday, January 10, Gemini CEO Cameron Winklevoss posted an open letter on Twitter to a board member of the Digital Currency Group. Winklevoss blamed DCG and its CEO Barry Silbert for their bad decision to invest $1.2 million in Three Arrows Capital (3AC), a crypto park that went down last year.
In addition, the Winklevoww twins made new accusations against DCG for “misrepresenting” their overall position on their supposed investment in Genesis. However, the Digital Currency Group responded to Cameron Winklevoss saying that it was a “desirable and negative publicity” by him trying to escape from Gemini.
The Digital Currency Group said that Cameron and Gemini are solely responsible for managing the Gemini Earn product and selling it to their customers. For context, Gemini Earn is an interest-paying app provided by the Gemini crypto exchange. Gemini has a significant investment of more than $900 million with its subsidiary DCG Genesis Global. In his Tuesday post, Digital Currency Group said:
We reserve all remedies in response to these malicious attacks, lies and defamations. DCG will continue to engage in productive dialogue with Genesis and its stakeholders with the goal of arriving at a solution that works for all parties.
Winklevoss wants DCG’s Barry Silbert to quit
In his open letter, Cameron Winklevoss called for Barry Silbert to resign from Digital Currency Group. In the letter, he accuses Silbert of unknowingly lending money to 3AC while 3AC sells Bitcoin for shares in Grauscale’s Bitcoin Trust (GBTC) stock. Going forward, Winklevoss alleged that Digital Currency Group failed to disclose these changes as a “risky manufacturing business.” So instead of representing them as secured loans, they represent DCG’s balance sheet as healthier than it actually is.
DCG recently posted a detailed Q&A noting that they hold Genesis $447.5 million and 4,550 BTC until May 2023. Furthermore, they also stated that they never had a relationship with Three Arrows Capital (3AC). Also, Digital Currency Group pointed out that the 1.1 billion warrants issued by Genesis and due in 2032 cannot be redeemed. This means that DCG will not immediately repay the $1.1 billion as part of Genesis’ bankruptcy restructuring.
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