Gemini Co-Founder Demands Removal of DCG CEO Over Alleged Fraud

• Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, wrote an open letter to the Digital Currency Board (DCG) board asking for the removal of the venture capital firm’s CEO Barry Silbert.
• Tensions between the high-profile executives of DCG and Gemini grew in the wake of the FTX collapse.
• Cameron accused DCG and its CEO Barry Silbert, as well as other key executives, of defrauding more than 340,000 Gemini and Earn users by falsely claiming that crypto brokerage Genesis Global Trading was solvent and financially stable.

Cameron Winklevoss, co-founder of the popular cryptocurrency exchange Gemini, has written an open letter to the Digital Currency Board (DCG) board, asking for the removal of the venture capital firm’s CEO Barry Silbert. The letter comes in the wake of the FTX collapse, which has caused tensions to rise between the high-profile executives of DCG and Gemini.

In the letter, Cameron accuses DCG and its CEO Barry Silbert, as well as other key executives, of defrauding more than 340,000 Gemini and Earn users. He alleges that the executives falsely claimed that crypto brokerage Genesis Global Trading, the lending arm of Genesis which is also owned by Digital Currency Group (DCG), was solvent and financially stable. By doing so, he claims they were trying to mislead lenders into believing that DCG had absorbed massive losses that Genesis incurred from the Three Arrows Capital Ltd. (3AC) collapse and induce lenders to continue making loans to Genesis.

Following the announcement of FTX’s collapse, Genesis announced that it is temporarily suspending redemptions and new loan originations. They cited “abnormal withdrawal requests” that had exceeded the company’s “current liquidity.” As a result, Gemini Trust Earn, a program that offered high-interest accounts thanks to a partnership with Genesis Global, also halted redemptions in mid-November. Reportedly, around $900 million of Gemini’s customer funds are now locked in Genesis.

This is not the first time Cameron has lashed out at Silbert in an open letter. In a move that shocked the crypto community, Cameron accused Silbert of attempting to acquire the Winklevoss’ patents, which were not for sale. He also accused Silbert of attempting to pressure Gemini into a business relationship with the Digital Currency Group.

It remains to be seen how the Digital Currency Board will respond to Cameron’s open letter and the accusations against Barry Silbert. For now, many Gemini and Earn users are counting on the DCG board to take action and ensure that their funds are returned to them as soon as possible.

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