Gemini Drama – DCG Accused of Using Funds to Help Grayscale 💸

Gemini Drama – DCG Accused of Using Funds to Help Grayscale

The Winklevoss twins accused Digital Currency Group CEO Barry Silbert of using funds owed to Gemini Earn clients to fund share buybacks, illiquid venture investments and to inflate the assets under management (AUM) of Grayscale, a digital asset manager owned by DCG. Grayscale is facing difficulties, with its Grayscale Bitcoin Trust trading at a 45% discount to the Bitcoin price, even as the cryptocurrency trades at multiyear lows. Despite the exchange of accusations, Winklevoss said he wants to solve the liquidity crunch by Sunday and remains “ready and willing to work with” Silbert.

It is still being determined what the dispute resolution might be and how it would affect frozen funds. Winklevoss has urged Silbert to take responsibility for the situation and to work with Gemini to find a solution. On the other hand, Silbert denied the allegations and said that DCG has made a proposal to Genesis and Gemini’s advisors but has not received a response. The ongoing disagreement between the two parties is likely to cause concern among clients of Gemini Earn, who may be anxious about the status of their funds. It is also expected to draw attention to the risks involved in lending and borrowing cryptocurrency, particularly in the wake of the collapse of FTX. It remains to be seen how the dispute will be resolved and the impact on the parties involved.

What do you think about the situation? And do you believe the accusations?

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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

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