In an effort to maintain its liquidity, the cryptocurrency-focused venture capital company Digital Currency Group (DCG) has informed its shareholders that it would be suspending its quarterly dividend payments until further notice.
The company’s financial problems stem from the difficulties experienced by one of its subsidiaries, a cryptocurrency platform known as Genesis Global Trading. According to reports, Genesis Global Trading owes its creditors well over $3 billion.
As of right now, customers are unable to withdraw cash from Genesis due to the exchange’s decision to cease withdrawals on November 16. This is what motivated Tyler and Cameron Winklevoss, in the representation of their exchange Gemini and its users who have assets on Genesis, to ask for the board of DCG to remove Barry Silbert from his position as CEO of the company in an open letter dated January 10.
Cameron Winklevoss claims that Genesis owes Gemini $900 million for money that was loaned to Genesis via Gemini’s Earn program, which allows consumers to earn an annual return of up to 7.4 percent. Even though DCG CEO Barry Silbert disputed it, Winklevoss also asserted DCG owed Genesis $1.675 billion.
Starting with Genesis’s liquidation of Three Arrows Capital in June 2022, which resulted in a $1.2 billion loss for the crypto lending firm, the creator of Gemini provides a chronology of DCG’s alleged falsehoods and misrepresentations.
Specifically, Winklevoss claims that beginning in July, Silbert, DCG, and Genesis engaged in a carefully orchestrated campaign of deception designed to convince Gemini, Earn customers, and other lenders that DCG had poured $1.2 billion of genuine backing into Genesis. Winklevoss and Silbert have been feuding in the public eye for a good number of months at this point.
