The cryptocurrency community woke up to another day filled with drama after a letter from the Chairman of the Digital Currency Group (DCG) to shareholders went wrong. DCG CEO Barry Silbert wrote a letter to shareholders on January 10, reflecting on the state of the cryptocurrency market and the growing fear, uncertainty and doubt (FUD) around the company. DCG is the parent company of cryptocurrency lending company Genesis Global Capital and Grayscale, the world’s leading crypto asset manager.
In the speech, Silbert addressed the growing issues around DCG and its affiliates due to the bear market and FTX infection. He said bad actors and the collapse of leading cryptocurrency companies had wreaked havoc on the industry. He noted that “DCG and many of our portfolio companies are not immune from the effects of the current turmoil.”
In the latter half of the letter, Silbert addressed some raging questions about DCG’s relationship with FTX, the loan agreement with Genesis and more. He said Genesis has a “business and lending relationship” with Three Arrows Capital and invested $250,000 in FTX’s Series B funding round in July 2021. DCG also borrowed $500 million between January and May 2022 at interest rates of 10%-12% and currently owes Genesis 447.5 One million dollars and 4,550 bitcoins
At a value of $78 million, due in May 2023.
RELATED: It’s Gonna Be Alright: DCG Crisis Likely Won’t Include ‘Much Selling’ – Novogratz
Stay safe in Web3. Learn more about Web3 Antivirus →
However, what has the cryptocurrency community baffled is that Silbert avoided addressing Cameron Winklevoss’ accusations that came just hours before his letter. Winklevoss wrote an open letter to DCG’s board of directors on January 10, saying that CEO Barry Silbert was “unfit” to run the company. Silbert was also accused of defrauding clients and hiding behind lawyers. Reportedly, Genesis owes Gemini $900 million.