6. February 2023

• Cameron Winklevoss, co-founder of 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.
• This follows a series of issues between high-profile executives of DCG and Gemini in the wake of the FTX collapse.
• Cameron accused the venture capital firm and its daughter company Genesis 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 cryptocurrency exchange Gemini, has expressed his dissatisfaction with the Digital Currency Group (DCG) and its CEO Barry Silbert with an open letter to the DCG board. His grievances are the result of the ongoing issues between high-profile executives of DCG and Gemini in the wake of the FTX collapse.

In the letter, Cameron accused the venture capital firm and its daughter company Genesis of defrauding more than 340,000 Gemini and Earn users by falsely claiming that crypto brokerage Genesis Global Trading, the lending arm of Genesis which is owned by Digital Currency Group (DCG), was solvent and financially stable. He alleged that this was done in order to mislead lenders into believing that DCG had absorbed losses that Genesis incurred from the Three Arrows Capital Ltd. (3AC) collapse and induce lenders to continue making loans to Genesis.

Following the announcement, 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 locked in Genesis. This is not the first time Cameron has voiced his opinion against Silbert, with the two executives having an ongoing rift which, according to Cameron, has led to this situation.

The open letter has been met with criticism, with some of Gemini’s customers accusing the exchange of not being transparent enough with its users. Others have also questioned the timing of the letter, with Gemini’s customers still waiting for their funds to be unlocked. Meanwhile, the situation remains unresolved and it is yet to be seen if Cameron’s call for the removal of Silbert will be heeded by the DCG board.