DCG chief Barry Silbert pens letter to shareholders, community reacts

The crypto neighborhood woke to another drama-filled day after the Digital Currency Group (DCG) chief’s letter to shareholders went wrong. DCG CEO, Barry Silbert, penned a letter to the shareholders on Jan. 10, reviewing the state of the crypto market and the growing worry, uncertainty and doubt (FUD) around the company. DCG is the parent company of crypto loaning company Genesis Global Capital and Grayscale, the world’s leading crypto possession manager.In the letter, Silbert addressed the growing issues around DCG and its subsidiaries owing to the bearishness and FTX contagion. He said that bad actors and the implosion of leading crypto business had damaged the market. He kept in mind,” DCG and a number of our portfolio business are not unsusceptible to the impacts of the present turmoil.”I’m exceptionally pleased with the function that DCG & I have

played as pioneers & contractors over the past years. We’ve invested in > 200 companies that have developed & shaped the market, we’ve assisted >construct the first publicly-quoted BTC fund, the biggest possession supervisor in the area.(2/10)– Barry Silbert (@BarrySilbert)January 10, 2023 In the latter half of the letter, Silbert attended to some raving concerns about DCG’s relationship

with FTX, the loan arrangement with Genesis and more. He said that Genesis had a”trading and loaning relationship”with Three Arrows Capital and had actually invested$250,000 in FTX’s Series B financing round in July 2021. DCG also obtained $500 million in between January and May 2022 at rates of interest of 10% -12 %and presently owes Genesis $447.5 million and 4,550 Bitcoin (BTC ), worth$ 78 million, which grows in May 2023. Related: It’ll be OK: DCG crisis likely won’t ‘include a lot of selling’– Novogratz Nevertheless, what puzzled the crypto community more was that Silbert prevented attending to allegations

by Cameron Winklevoss that came just hours before his letter. Winklevoss penned an open letter to the board of DCG on

Jan. 10, saying CEO Barry Silbert was”unfit”to run the business. He also accused Silbert of defrauding customers and concealing behind attorneys. Genesis apparently owes Gemini$900 million. Cast your vote now!One Twitter user wrote that the letter suggests that individuals may not get their money back.

of purchasing GBTC sharesby offering obtained BTC and composed:”So you obtained Bitcoins, offered them, and bought GBTC shares? Unsure how you”hedge” GBTC long places with Bitcoins otherwise.” Other crypto neighborhood members implicated

Silbert of deflecting the accusations and called the letter a “PR tactic.”Laymen terms! I’m Rekt and can’t pay @cameron

@tyler @Gemini but I did some cool things along the method! https://t.co/8ZzrE5KIyZ!.?.!— KingKong(@KingKon43801491)January 10, 2023 A couple of users went on to compare his tactics to that of Terraform Labs co-founder Do Kwon, while others speculated that the letter hinted that Silbert may lose his task in the coming weeks.