Gemini Co-Founder Cameron Winklevoss has called for the removal of Digital Currency Group (DCG) CEO, Barry Silbert, saying he and DCG's affiliated companies have defrauded over 340,000 clients of Gemini.
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In an open letter published on Twitter, Winklevoss wrote that DCG's subsidiaries "conspired to make false statements and misrepresentations" to Gemini Earn users and the public. The Gemini Co-Founder believes that Genesis lent over $2 billion to the now-collapsed hedge fund Three Arrows Capital, resulting in a loss of more than $1.2 billion. Silbert could either restructure the Genesis loan book or restructure the hole, but decided to do nothing, Winklevoss emphasized.
As a result, Winklevoss called for the board of DCG to remove Silbert from his role as he "has proven himself unfit to run DCG and unable to find a resolution with creditors."
As of press time, Silbert himself made no public comments on the matter, but a Twitter account for DCG denied accusations, saying that the letter is "another desperate and unconstructive publicity stunt from Cameron Winklevoss to deflect blame from himself and Gemini, who are solely responsible for operating Gemini Earn and marketing the program to its customers."
Gemini Earn, a lending arm of Gemini, halted withdrawals in November last year shortly after its partner Genesis started experiencing liquidity issues. So far, neither DCG nor Genesis provided creditors with a timeline on when exactly they plan to resolve liquidity issues.
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