Wow, talk about a heated letter! It seems that Cameron Winklevoss, the co-founder of the popular cryptocurrency exchange Gemini, has some strong words for Barry Silbert, the CEO of Digital Currency Group (DCG). In an open letter, Winklevoss accuses Silbert and Genesis Global Capital (a subsidiary of DCG) of defrauding over 340,000 users in the Gemini Earn program. He also claims that Genesis owes Gemini a whopping $900 million and accuses Silbert of hiding "behind lawyers, investment bankers, and process."
But that's not all, Winklevoss goes on to claim that Genesis lent $2.3 billion to Three Arrows Capital, which ultimately resulted in a $1.2 billion loss for the crypto firm after the hedge fund failed in June 2022. He alleges that Silbert, DCG, and Genesis orchestrated "a carefully crafted campaign of lies" in an effort to make it seem like DCG had injected funds into Genesis.
Winklevoss also alleges that Genesis CEO Michael Moro was in on the alleged duplicity, claiming that he issued "false and misleading" statements on social media. To top it off, Winklevoss accuses certain DCG personnel of working behind the scenes to cover up the lack of "adequate capitalization" at Genesis.
Well, it looks like we've got a high-stakes game of Crypto-Clue on our hands, with accusations flying left and right. Let's see if we can figure out who done it, in the crypto hedge fund, with the promissory note. I have a feeling this one is going to go to court.
Mark Cuban to be Deposed for Promoting Voyager
On Feb. 2, Dallas Mavericks owner Mark Cuban will be deposed by the plaintiffs of a proposed class-action lawsuit against him. The lawsuit claims that he promoted a Ponzi scheme in the form of now-bankrupted crypto lender Voyager Digital. Additionally, two Dallas Mavericks employees will be deposed before Feb 23rd, and three plaintiffs behind the suit — Pierce Robertson, Rachel Gold, and Sanford Gold — will be deposed before the end of this month. Let’s look at what led to this point and what it could mean for all involved parties.
The lawsuit was initially filed on Aug 10th. The plaintiffs allege that Cuban misrepresented Voyager on numerous occasions before it went bankrupt, making dubious claims of it being cheaper than competitors and offering “commission-free” trading services. If true, these actions by Cuban could have misled investors and cost them dearly, as Voyager ultimately filed for bankruptcy protection last summer with over $1 billion in debts. As such, the plaintiffs seek punitive damages from Cuban and other defendants involved in the case.
This deposition comes following a decision by judge Lisette M. Reid's to deny his lawyers' request that it be split into two separate sessions due to their concerns about potential mischaracterization during cross-examination. Ultimately only time will tell us how things turn out, but one thing is certain; we should expect plenty more news about this case over the coming weeks as all parties prepare for their respective depositions before February 23rd.