Billionaire Cameron Winklevoss calls for removal of liar Barry Silbert, CEO of crypto conglomerate DCG

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Topline

In an open letter on Tuesday, Cameron Winklevoss called for the removal of Barry Silbert, the embattled CEO of crypto holding company Digital Currency Group, for alleged misconduct, the latest drama in billionaire Silberts’ dramatic mid-winter downfall. crypto.

Cameron Winklevoss on stage at the 2021 Bitcoin Convention in Miami.

Getty Images Key Facts

Winklevoss, who runs crypto exchange Gemini alongside his billionaire twin brother Tyler Winklevoss, posted the memo to the DCG board on his Twitter account.

DCG, the parent company of five crypto firms, including former lending giant Genesis which suspended customer withdrawals for nearly two months, owes Gemini $900 million, according to Cameron Winklevoss.

Winklevoss alleged on Tuesday that Silbert and other Genesis and DCG decision makers embarked on a carefully crafted campaign of lies to hide Genesis’ significant liquidity problems posed by the June 2022 bankruptcy of crypto hedge fund Three Arrows Capital.

Among DCG’s alleged wrongdoings were accounting fraud by rigging losses and engaging in a scheme that bolstered the value of digital asset management firm Grayscale, a subsidiary of DCG that Winklevoss called Barrys Financial Hotel California that would print money for the DCG Universe in perpetuity, outlining a pattern similar to that which led to the infamous demise of Sam Bankman-Frieds FTX and Alameda Research last year.

Winklevoss made a thinly veiled threat of legal action if Silbert remained in office, writing that he hopes to work with DCG’s future leadership to reach a positive and amicable solution.

DCG and Genesis did not immediately respond to requests for comment from Forbes.

Key context

The Department of Justice and the Securities Exchange Commission are investigating potentially improper internal financial transfers between DCG subsidiaries, Bloomberg reported Friday. Genesis, which owed $1.8 billion to creditors in December, laid off 30% of its employees last week. Worth $3.2 billion in March 2022, Silbert is now worth $0, according to our latest estimates. The Winklevoss brothers are each worth $1.1 billion, up from $4 billion in March 2022 as bitcoin crashed. Bitcoin is down around 75% from its November 2021 peak, trading at around $17,250 on Tuesday.

crucial quote

Silbert refused to take responsibility following the Three Arrows’ insolvency and during its subsequent fallout, Winklevoss wrote. Instead, he resorted to fraud to protect his ill-gotten gains.

Further reading

These Crypto Founders and Bitcoin Moguls Lost $116 Billion in 2022 (Forbes)

Crypto Broker Genesis cuts 30% of its staff and considers bankruptcy (Forbes)

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