Breaking: DCG did not ensure Genesis had capital after it lost $1.2 billion in 3AC
Cameron Winklevoss, the founding father of Gemini, has issued one other open letter on Genesis, a distinguished crypto-lending agency. However this time round, the letter addresses the Digital Forex Group’s (DCG) Board. The letter claims that Barry Silbert – the present CEO of DCG – has been deceptive and mendacity to Gemini, its Earn customers, and different lenders. That is notably with regard to Genesis’ accounting books.
The founder highlighted that Genesis had misplaced almost $1.2 billion after the collapse of 3AC, a Singapore-based hedge fund. Put up this, it was introduced that DCG had “injected $1.2 billion” to assist Genesis’ capital. Nevertheless, Winklevoss claimed that this by no means passed off truly. As a substitute, DCG had “entered right into a promissory notice with the crypto-lending platform.
The Gemini head claims that this notice didn’t present Genesis with an “speedy liquidity place or make its stability sheet solvent”. He mentioned,
“In actuality, DCG had not ensured that Genesis had the capital to function. In reality, DCG hadn’t given Genesis a lot as a penny of precise funding to make up for the 3AC losses. As a substitute, DCG entered right into a 10-year promissory notice with Genesis at an rate of interest of 1% – due in 2032.“
The story continues to be growing.