Odaily Planet Daily News Bitcoin Magazine CEO David Bailey published an article on the X platform accusing Grayscale parent company DCG founder and CEO Barry Silbert of criminal behavior.
Bailey alleges that Silbert borrowed customer deposits to manipulate and prop up the price of GBTC in order to use it as collateral. He also borrowed bitcoin from Genesis users knowing that his company was insolvent, which is a criminal act.
Bailey claims that Silbert spent as much as $500 million in 2022 to "maintain the price of GBTC," especially during the collapse of Do Kwon's Terra/Luna. Silbert allegedly spent $300 million in funds borrowed from Genesis in mid-May 2022 when Terra/Luna collapsed. (Protos)
In previous news, Genesis Global Capital filed a lawsuit against Digital Currency Group (DCG) and Digital Currency Group International (DCGI), requiring them to repay multiple loans with a principal of more than $600 million.
Additionally, DCG and its CEO Barry Silbert have been facing fraud charges from Cameron Winklevoss, co-founder of crypto trading platform Gemini, for several months. Although they have denied the allegations, federal officials are digging into internal financial dealings at DCG and its subsidiary Genesis Global Capital.
In recent months, prosecutors in Brooklyn, FBI agents and U.S. SEC staff have interviewed Winklevoss to discuss his allegations, according to people familiar with the matter. The U.S. Attorney's Office for the Eastern District of New York specifically inquired about Silbert's conduct, the people said.