DCG's Dilemma: Should It Sell Its GBTC Holdings to Repay Gemini? - Ep. 442

Unchained

Laura Shin

Tech News, Business News, News

4.6 • 1.3K Ratings

🗓️ 13 January 2023

⏱️ 41 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Gemini has accused Digital Currency Group CEO Barry Silbert of fraud after allegedly misrepresenting the financials of his company. The accusations follow a dispute over the return of $900 million in assets owed to Gemini Earn’s users. Karim Dandashy, CFA and portfolio manager at XBTO Group, discusses everything about the ongoing drama between Genesis, its parent company DCG, and Gemini. Show highlights: the fraud accusations against DCG CEO Barry Silbert all the details disclosed in Barry's response whether Genesis will file for chapter 11 bankruptcy protection the meaning of the $1.1 billion promissory note being not callable the EDNY and SEC investigation on transfers between DCG and a subsidiary – potentially Genesis whether the 1% interest rate charged for the loan was suitable considering the nature of Genesis' business whether DCG could sell its venture investments to plug the hole why Bitvavo rejected an offer from DCG to return 70% of the $300 million owed to them what Karim would do if he was leading DCG Thank you to our sponsors! Crypto.com Guest Karim: Twitter LinkedIn Previous coverage of Unchained on DCG and Genesis: Gemini vs. DCG Is Heating Up. Could Gemini Force Genesis Into Bankruptcy? ‘The Last Big Whale’: Why the Crypto Contagion of 2022 Eventually Hit Genesis Adam Cochran on Why Crypto Prices Will Be Down Bad for the Next Six Months Is the Collapse of Crypto Lending Over, or Is It Just Starting? The Chopping Block: SBF Wants to Win in the Court of Public Opinion. Will He? Genesis/Gemini: Unchained: Gemini Ends Its Earn Program and Calls for Barry Silbert’s Ouster DCG Under Investigation by DOJ and SEC: Report Genesis CEO Says Firm Needs More Time to Find a Solution Gemini Co-Founder Accuses DCG’s Barry Silbert of ‘Bad Faith and Stall Tactics’ Genesis Warns of Bankruptcy If Funding Plans Fail: Report Financial Times: DCG’s crypto broker Genesis owes creditors more than $3bn Protos: Scoop: Larry Summers gives up advisory role at crypto firm DCG amid criticism CNBC: Crypto firms Genesis and Gemini charged by SEC with selling unregistered securities Forbes: Gemini Faces Class-Action Lawsuit Over Unregistered Interest-Bearing Accounts Decrypt: Dutch Bitcoin Exchange Bitvavo Says DCG’s Payback Plan ‘Not Acceptable’ Sam Andrew’s thread Ram Ahluwalia on DCG CEO’s update to shareholders Ryan Selkis on the definition of the current assets Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hi, everyone. Welcome to Unchained, your no-hi free source for all things crypto. I'm your host,
0:08.7	Laura Shin, author of The Crypto Peans. I started covering crypto seven years ago and as a senior
0:14.4	editor of Forbes was the first mainstream media reporter to cover cryptocurrency full-time.
0:19.3	This is the January 13, 2023 episode of Unchained. Did you know that Unchained offers the daily
0:25.1	digest of the top stories in crypto? To stay up-to-date on everything going on in the world of Web 3,
0:30.2	visit Unchainedcrypto.substac.com. This episode is brought to you by London Business School.
0:36.7	Looking to accelerate your business or understand the opportunities in AI or ESG,
0:41.7	are you thinking about taking the plunge into entrepreneurship or about what leadership skills will
0:46.3	take you to the next level? To listen to the latest insights and discussion from LBS faculty,
0:51.6	subject experts and industry insiders, look for podcasts from London Business School.
0:56.7	Navigate the now and be prepared for what's next with London Business School.
1:21.6	With the code Laura, link in the description.
1:25.6	Today's guest is Kareem Dandashi, portfolio manager at XBTO Group. Welcome Kareem.
1:32.4	Hi Laura, thank you for having me. There's been quite the ongoing feud between
1:37.9	Gemini and Cryptolender Genesis as well as its parent company DCG. Just to give some
1:44.2	background for people who haven't been following this so that we have covered it on the show.
1:48.0	Gemini has a program called Earn that has been offering yields to its customers.
1:53.8	And in order to earn that return, it's been lending those assets to Genesis.
1:59.1	But because of the numerous bankruptcies that are happening, Genesis is having at minimum
2:06.3	liquidity issues and quite possibly and likely insolvency issues. So it cannot pay back Gemini
2:13.7	earn customers. Last week, Cameron Winklevoss sent a public letter to Barry Silver,
2:18.7	the head of DCG, giving him a deadline of January 8th, which was Sunday,
	...

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