Last Updated on January 10, 2023 by Bitfinsider

In an open letter, Gemini President Cameron Winklevoss sought the departure of Digital Currency Group CEO Barry Silbert, deepening an existing dispute over the exchange’s Earn customers’ frozen assets.

“I’m writing to inform you that Genesis Global Capital LLC, together with its parent firm Digital Currency Group, scammed Gemini and over 340,000 Earn customers,” he said, saying that Genesis had misled the company, Earn users, and the public about the company’s solvency and financial health.

Earlier last month, Winklevoss accused Silbert of obstructing efforts to retrieve payments for Gemini Earn users, accusing the CEO of “bad faith delay tactics” and comingling funds at his company.

The letter explains what the business believes happened with DCG’s participation with the bankrupt hedge fund 3AC. Silbert, according to Winklevoss, neglected to take steps to absorb the shock of 3AC’s failure.

Genesis was prepared to “recklessly lend to 3AC since 3AC was utilizing the money for the kamikaze Grayscale net asset value (NAV) play,” according to Winklevoss.

He calls it “a recursive transaction” that increased the AUM of the Grayscale Bitcoin Trust (ticker: GBTC) and, as a result, the fees collected by its sponsor, Grayscale Investments, LLC (Grayscale), a fully owned subsidiary of DCG.

“3AC was a mule between the parties, and as a result, Genesis ended up holding tremendous risk,” he continues.

He explained that this meant that GBTC shares were held out of the market, resulting in a lower share price and a wider discount to NAV.

“He opted not to close the $1.2 billion gap,” he wrote. “Rather, he feigned to.”

He also urged Silbert’s departure as CEO, claiming that there is “no route ahead” with him in charge of the corporation.