Recursive trades between the Grayscale Bitcoin Trust and the Three Arrows Capital hedge fund allegedly inflated assets, according to an open letter from the Gemini co-founder. 3098 Total views 27 Total shares Listen to article 0:00 News Own this piece of history
Collect this article as an NFT Cameron Winklevoss, co-founder of the cryptocurrency exchange Gemini, has penned an open letter to the board of Digital Currency Group, or DCG, saying CEO Barry Silbert was unfit to run the company.
In a Jan 10. letter, Winklevoss claimed Silbert and Genesis Global Capital a subsidiary of DCG had defrauded more than 340,000 users who were a part of Geminis Earn program. The letter followed a Jan. 2 appeal on Twitter to Silbert directly, in which the Gemini co-founder said Genesis owed Gemini $900 million, accusing the CEO of hiding behind lawyers, investment bankers, and process.
According to Winklevoss, Genesis lent more than $2.3 billion to Three Arrows Capital, a move which ultimately left the crypto firm with a loss of $1.2 billion once the hedge fund failed in June 2022. He claimed Silbert, DCG, and Genesis orchestrated “a carefully crafted campaign of lies” starting in July 2022 in an effort to show DCG had injected the funds into Genesis by including a 10-year promissory note as part of its assets.
Winklevoss alleged Genesis CEO Michael Moro was complicit in this duplicity, by issuing false and misleading statements on social media regarding DCG providing capital to Genesis. In addition, he claimed certain DCG personnel had worked behind the scenes to cover the lack of adequate capitalization at Genesis.
Related: Crypto investors sue Winklevoss twins over interest accounts on Gemini
According to the Gemini co-founder, any accounting irregularities of which DCG and Silbert had been a part might have been overlooked had FTX not collapsed within a matter of months. He alleged there were recursive trades between Three Arrows and the Grayscale Bitcoin Trust in what he called effectively swap transactions for Genesis of Bitcoin (BTC) for GBTC a move in which Genesis eventually lost and did not adequately report on its balance sheets.These misrepresentations […] were a sleight of hand designed to make it appear as if Genesis was solvent and able to meet its obligations to lenders, without DCG actually committing to the financial support necessary to make this true. DCG wanted to have its cake and eat it too.
Earn Update: An Open Letter to the Board of @DCGco pic.twitter.com/eakuFjDZR2 Cameron Winklevoss (@cameron) January 10, 2023
Unlike in his Jan. 2 letter, Winklevoss directly called on the DCG board to remove Silbert in an effort to provide a resolution for Earn users. In response to that letter, Silbert claimed DCG did not borrow $1.675 billion from Genesis and never missed an interest payment to Genesis and is current on all loans outstanding.
“There is no path forward as long as Barry Silbert remains CEO of DCG,” said Winklevoss. “He has proven himself unfit to run DCG and unwilling and unable to find a resolution with creditors that is both fair and reasonable. As a result, Gemini, acting on behalf of 340,000 Earn users, requests that the Board remove Barry Silbert as CEO.
Cointelegraph reached out to Barry Silbert, but did not receive a response at the time of publication. #Business #Barry Silbert #Gemini #Cryptocurrency Exchange #Cameron Winklevoss Related News How to create an ERC token without coding, explained Remote work could redefine the global workforce for good Genesis and DCG seek path for the recovery of assets amid liquidity issues 3 reasons why it could be a rocky week for Bitcoin, Ethereum and altcoins Grayscale ETH trust nears record 60% discount as nerves continue over DCG
Vladimir Putin has agreed to allow Ukraine’s allies to offer it a NATO-like security guarantee as part of an eventual deal to end the war, according to US special envoy Steve Witkoff.
Speaking to CNN on Sunday, Mr Witkoff, who was by the US president’s side at the summit, said: “We were able to win the following concession: That the United States could offer Article 5-like protection, which is one of the real reasons why Ukraine wants to be in NATO.”
Image: File pic: AP
Article 5 is a core principle of the 32-member collective, which states that an armed attack against one or more of its members shall be considered an attack against all. It has only been invoked once, by the US, in the wake of the 9/11 attacks in 2001.
Russia has repeatedly insisted that Ukraine cannot be allowed to join NATO and has dismissed the idea that NATO member forces could be peacekeepers under some sort of ceasefire deal.
Mr Witkoff, who has previously met with Mr Putin to discuss an end to the Ukraine war, said Friday’s summit was the first time he had heard the Russian president agree to the suggestion of NATO-like protection – and called it “game-changing”.
Image: Witkoff (far right) with Trump, Putin and their delegations in Alaska. Pic: Reuters
His comments came as Volodymyr Zelenskyy met with European Commission President Ursula von der Leyen in Brussels.
The Ukrainian president said in a post on X: “This is a historic decision that the United States is ready to take part in security guarantees for Ukraine.
“Security guarantees, as a result of our joint work, must really be very practical, delivering protection on land, in the air, and at sea, and must be developed with Europe’s participation.”
Image: Volodymyr Zelenskyy and Ursula von der Leyen on Sunday. Pic: AP
Ms von der Leyen, speaking at a news conference with the Ukrainian president, said the European Union “is ready to do its share”.
EU leaders to join Zelenskyy at White House
Sunday afternoon also saw Ms von der Leyen and Mr Zelenskyy dial in to a meeting with the coalition of the willing, a peacekeeping alliance of European leaders – some of whom will accompany Mr Zelenskyy to meet with Mr Trump tomorrow.
Ms von der Leyen will be at the crunch talks in Washington DC, as will Sir Keir Starmer, France’s Emmanuel Macron and Italy’s Giorgia Meloni.
Germany’s Chancellor Friedrich Merz and NATO Secretary General Mark Rutte will also be in attendance, after the US president reportedly extended an invitation to European leaders.
Image: Mr Zelenskyy clashed with Mr Trump during his trip to Washington in February. Pic: Reuters
Mr Putin has reportedly made demands to take control of the eastern Donetsk and Luhansk regions of Ukraine during his summit with Mr Trump as a condition for ending the war.
In exchange, Russia would give up other Ukrainian territories held by its troops, according to several news reports citing sources close to the matter.
Russian troops currently occupy large parts of the two regions and, in September 2022, Moscow announced it was officially annexing them, alongside the Kherson and Zaporizhia regions, in a move rejected and condemned as illegal by the West.
Mr Trump is said to be planning to urge Mr Zelenskyy to agree to the conditions as part of a peace deal to end the war.
That’s despite the Ukrainian president previously ruling out formally handing any territory to Moscow, which he says would be impossible under the country’s constitution, and would deprive Ukraine of defensive lines and open the way for Moscow to conduct further offensives.
Image: Mr Putin and Mr Trump shake hands at the Alaska summit. Pic: AP
In coordinated statements following the Alaska summit, European leaders said Mr Zelenskyy must play a greater role in future talks, and that peace cannot be achieved without him.
The US president said the Washington talk with Mr Zelenskyy could potentially pave the way for a three-way meeting with Mr Putin.
On Saturday, Downing Street insisted Sir Keir and other allies stand ready to support the next phase of talks to end the war.
“At the meeting that will take place at the White House tomorrow, the Prime Minister, with other European partners, stands ready to support this next phase of further talks and will reaffirm that his backing for Ukraine will continue as long as it takes,” a statement from No 10 said.
Vladimir Putin has agreed to allow Ukraine’s allies to offer it a NATO-like security guarantee as part of an eventual deal to end the war, according to US special envoy Steve Witkoff.
Speaking to CNN on Sunday, Mr Witkoff, who was by the US president’s side at the summit, said: “We were able to win the following concession: That the United States could offer Article 5-like protection, which is one of the real reasons why Ukraine wants to be in NATO.”
Image: File pic: AP
Article 5 is a core principle of the 32-member collective, which states that an armed attack against one or more of its members shall be considered an attack against all. It has only been invoked once, by the US, in the wake of the 9/11 attacks in 2001.
Russia has repeatedly insisted that Ukraine cannot be allowed to join NATO and has dismissed the idea that NATO member forces could be peacekeepers under some sort of ceasefire deal.
Mr Witkoff, who has previously met with Mr Putin to discuss an end to the Ukraine war, said Friday’s summit was the first time he had heard the Russian president agree to the suggestion of NATO-like protection – and called it “game-changing”.
Image: Witkoff (far right) with Trump, Putin and their delegations in Alaska. Pic: Reuters
His comments came as Volodymyr Zelenskyy met with European Commission President Ursula von der Leyen in Brussels.
The Ukrainian president said in a post on X: “This is a historic decision that the United States is ready to take part in security guarantees for Ukraine.
“Security guarantees, as a result of our joint work, must really be very practical, delivering protection on land, in the air, and at sea, and must be developed with Europe’s participation.”
Image: Volodymyr Zelenskyy and Ursula von der Leyen on Sunday. Pic: AP
Ms von der Leyen, speaking at a news conference with the Ukrainian president, said the European Union “is ready to do its share”.
EU leaders to join Zelenskyy at White House
Sunday afternoon also saw Ms von der Leyen and Mr Zelenskyy dial in to a meeting with the coalition of the willing, a peacekeeping alliance of European leaders – some of whom will accompany Mr Zelenskyy to meet with Mr Trump tomorrow.
Ms von der Leyen will be at the crunch talks in Washington DC, as will Sir Keir Starmer, France’s Emmanuel Macron and Italy’s Giorgia Meloni.
Germany’s Chancellor Friedrich Merz and NATO Secretary General Mark Rutte will also be in attendance, after the US president reportedly extended an invitation to European leaders.
Image: Mr Zelenskyy clashed with Mr Trump during his trip to Washington in February. Pic: Reuters
Mr Putin has reportedly made demands to take control of the eastern Donetsk and Luhansk regions of Ukraine during his summit with Mr Trump as a condition for ending the war.
In exchange, Russia would give up other Ukrainian territories held by its troops, according to several news reports citing sources close to the matter.
Russian troops currently occupy large parts of the two regions and, in September 2022, Moscow announced it was officially annexing them, alongside the Kherson and Zaporizhia regions, in a move rejected and condemned as illegal by the West.
Mr Trump is said to be planning to urge Mr Zelenskyy to agree to the conditions as part of a peace deal to end the war.
That’s despite the Ukrainian president previously ruling out formally handing any territory to Moscow, which he says would be impossible under the country’s constitution, and would deprive Ukraine of defensive lines and open the way for Moscow to conduct further offensives.
Image: Mr Putin and Mr Trump shake hands at the Alaska summit. Pic: AP
In coordinated statements following the Alaska summit, European leaders said Mr Zelenskyy must play a greater role in future talks, and that peace cannot be achieved without him.
The US president said the Washington talk with Mr Zelenskyy could potentially pave the way for a three-way meeting with Mr Putin.
On Saturday, Downing Street insisted Sir Keir and other allies stand ready to support the next phase of talks to end the war.
“At the meeting that will take place at the White House tomorrow, the Prime Minister, with other European partners, stands ready to support this next phase of further talks and will reaffirm that his backing for Ukraine will continue as long as it takes,” a statement from No 10 said.
The right-hander allowed six runs in 2⅓ innings Sunday against the Washington Nationals, a start that ended when seven consecutive batters reached safely.
Nola struck out four in his first major league outing since May 14.
The former All-Star was one of the majors’ most durable pitchers entering the season, making at least 32 starts and throwing at least 180⅔ innings in each of the last six full seasons. But a sprained right ankle and fractured rib cost him three months this season.
His return became even more significant Saturday when Philadelphia placed ace Zack Wheeler on the injured list with a blood clot in his right arm. Nola already was scheduled to start after making three minor league rehabilitation appearances, though the Phillies scrapped their plans to use a six-man rotation.
Nola gave up Luis Garcia Jr.’s leadoff single in the first inning, then appeared to settle in. He retired the next seven batters as Philadelphia built a 6-0 lead.
The Nationals stitched together three consecutive singles in the third, the last by CJ Abrams to score a run. That led to a mound visit from pitching coach Caleb Cotham, but Nola then walked Paul DeJong before giving up Daylen Lile‘s two-run single and Dylan Crews‘ two-run double. Jose Tena followed with a tying double to end Nola’s day.
Nola allowed seven hits while throwing 53 pitches. His ERA rose to 6.92.
In addition to Nola taking Wheeler’s roster spot, the Phillies activated third baseman Alec Bohm from the injured list and optioned infielder Otto Kemp to Triple-A Lehigh Valley. To make room on the 40-man roster for Nola, Philadelphia released outfielder Cal Stevenson.