Will the boss of DCG be besieged by the intensification of the encryption lending crisis?
The 46-year-old manager, in an industry full of billionaire managers, die-hard preachers and scams, the CEO is a typical middle and senior manager, courteous, gentle and modest, and has been immersed in the Bitcoin field for a long time. These characteristics are right. Silbert's career is very helpful: he has obtained well-known venture capital such as Softbank, established a huge business network, and almost touched every corner of the encryption runway.
This popularity has made him popular. Genesis Global Capital, a branch of DCG, is waiting for the storm center of cryptolending institutions - overdue loans, excluding deposits and the increase of distrust, which may make this loosely controlled industry reappear the credit crisis of Wall Street in 2008.
This turmoil plunged Silbert into the escalating struggle of Cameron Winklevoss, founder of Gemini, the crypto exchange. Winklevoss users could not use or withdraw users. Genesis said that the US government was investigating the internal financial investment of $900 million in DCG. Genesis warned that if it could not raise the required cash, it might declare bankruptcy.
Even the largest crypto fund in the world, DCG's Gray BTC Trust Fund (GBTC), has been trading at a lower price than its Bitcoin market, which makes shareholders angry. These adverse conditions mean the change of Silbert's position. As a former investment banker, Silbert participated in the handling of the Enron bankruptcy case. His business in the encryption field once estimated his personal wealth at $3 billion. With the rise of the encryption boom, he longed for DCG to establish a group company similar to Standard Oil Company, and then lead the digital currency.
However, according to the Bloomberg Billionaire Index, the bear market caused his net asset to fall by less than $700 million. Silbert, an entrepreneur who works in controlling the opaque market, is now facing a crisis of trust from investors. Investors suddenly feel panic about the risks they may not see. Silbert is "under siege".
In a letter to DCG shareholders on Tuesday, Silbert tried to dispel this concern. He wrote: "The past year was the most difficult one in my life. After spending ten years for this company and this field and insisting on doing things in the right way, it is challenging to question my honesty and kindness."
DCG, located in Stamford, Connecticut, has recently encountered GeminiEarn, which is the cooperation between Gemini and Genesis, the Winklevoss Brothers cryptocurrency company. With a simple name and prefix, GeminiEarn provides an attractive opportunity for digital currency investors to deposit your virtual currency and earn up to 8% of profits. This type of income is particularly attractive in the era of the lowest interest rate. At that time, the traditional bank savings account basically had no income, and GeminiEarn had a wide range of financial resources.
But even at the peak of digital currency, everyone is right. It is doubtful how Genesis can bring such high returns. A potential partner asked for anonymity, and Genesis failed to answer a series of questions, including the need to provide the name of its bank partner and financial report. These problems now seem far-sighted. In November, after the shock wave caused by the rapid collapse of the cryptocurrency market, Genesis suddenly stopped withdrawing cash. There are about 340000. Gemini customers cannot use about $900 million.
Since then, Cameron Winklevoss of Gemini and Silbert have been fighting more and more openly. On Tuesday, he called on the shareholders' meeting of DCG to dismiss the CEO, accuse him of cheating Gemini customers and falsely claim the support of its hedge fund Genesis after the collapse of Sanjian Capital. In an email statement, DCG spokesman Amanda Cowie said that the request was "Cameron Winklevoss's desperate and non-constructive propaganda stunt aimed at transferring himself and himself. Gemini accused them of handling the operation of GeminiEarn and marketing the plan to customers," and added that these allegations were "malicious, false and defamatory".
According to Silbert's letter, DCG did not mix cash from its business, and the company was not aware of all the investigations conducted by the New York federal prosecutor, as previously reported by Bloomberg. Silbert has experience in dealing with crisis enterprises. After graduating from Emory University, he graduated from the Internet foam stage in 1998. Silbert began to work as an investment banker at Houlihan Lokey Inc., where he handled his own business. The bankruptcy of Enron and WorldCom.
This work inspired his creation. The idea of SecondMarket. SecondMarket opened a niche market in stock trading for unlisted companies on Facebook and Twitter. The company was sold to NASDAQ in 2015. Annie Tierney, founder of LiquidAdvisors, said: "At the forefront of the trend, he found opportunities, but we always make black and white rules around gray things."
Tierney is the general counsel of SecondMarket and has worked with Silbert for nearly five years. Murfie's former CEO Matt Younkle said: "From the perspective of the founder, he really understands things. He is knowledgeable, has extensive contacts, and can provide suggestions at any time." In the same year, a more advanced technology attracted Silbert's attention: BTC. According to an interview with the New York Stock Exchange, he bought his first Bitcoin without telling his wife. He was founded in 2015. DCG。 DCG continues to control several encryption enterprises and support more than 200 blockchain-related businesses around the world. Its investment helps to legalize digital currency into a reliable asset class for millions of investors.
DCG also owns CoinDesk, a news media website that first exposed the SamBankman-Fried (SBF) encryption empire scandal. Genesis was once one of the largest lenders of institutional investors, and issued a loan of 130.6 billion dollars in 2021. Now its fate is uncertain. Compared with other peers, Silbert's influence and wealth expansion should be kept as low as possible, and the encryption downturn in 2022 made him the focus of attention again. Houlihan Lokey and Silbert Investment Bank have started their career and have been cooperating with Gemini. Its current task is to recover the troubled Genesis funds.
An insider who is engaged in venture funds said that the description of the ticket Silbert tried to provide to you Genesis is is to "keep a certain distance" transactions, thus weakening the relationship between them. The insider said: "In the final analysis, this is a vertical integration method. The left hand to the right hand is still the same person and the same head office.".