{"id":544036,"date":"2023-01-26T22:22:08","date_gmt":"2023-01-26T19:22:08","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/opinion-barry-silbert-keeps-quiet-as-genesis-goes-down-in-flames\/"},"modified":"2023-01-26T22:22:08","modified_gmt":"2023-01-26T19:22:08","slug":"opinion-barry-silbert-keeps-quiet-as-genesis-goes-down-in-flames","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/opinion-barry-silbert-keeps-quiet-as-genesis-goes-down-in-flames\/","title":{"rendered":"# Opinion: Barry Silbert keeps quiet as Genesis goes down in flames"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a28ce153e797\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a28ce153e797\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-barry-silbert-keeps-quiet-as-genesis-goes-down-in-flames\/#%E2%80%9D_Opinion_Barry_Silbert_keeps_quiet_as_Genesis_goes_down_in_flames_%E2%80%9C\" >&#8221; Opinion: Barry Silbert keeps quiet as Genesis goes down in flames &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Opinion_Barry_Silbert_keeps_quiet_as_Genesis_goes_down_in_flames_%E2%80%9C\"><\/span>&#8221; Opinion: Barry Silbert keeps quiet as Genesis goes down in flames &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDEvM2U3N2Y4MDEtZTljNy00YjhjLTgxY2MtNWFhZTUxMmExOTY4LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a4050f8>Just two months after the collapse of FTX, Genesis is following suit.<\/p>\n<p>Against an increasingly disheartening backdrop of \u201cBig Cryptos\u201d going bust, Barry Silbert\u2019s cryptocurrency lender, Genesis Global Holdco, is the latest firm to file for bankruptcy, and if things always come in three, it might not be the last. <\/p>\n<p>Genesis Capital\u2019s parent company, Digital Currency Group, has denied any involvement in the bankruptcy filing, citing \u201ca special committee of independent directors\u201d in charge of the decision, seemingly without any input from Silbert himself. But both companies are already getting hit with fresh securities class-action lawsuits alleging violations of federal securities laws. <\/p>\n<p>The complaint also alleges \u201csecurities fraud through a scheme to defraud prospective and current digital asset lenders by making false and misleading statement[s],\u201d which translates to: Silbert knowingly and intentionally lied about the company\u2019s health, profits and future viability, thereby violating section 10(b) of the United States Securities Exchange Act.<\/p>\n<p>Well, this is easy to confirm. <\/p>\n<p>Genesis\u2019 derivatives business had $175 million exposure to FTX, but back in November, when the exchange collapsed, the firm wasn\u2019t forthcoming about its precarious position and released a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of frustratingly contradictory statements that left the community more in the dark than ever. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Genesis Timeline<\/p>\n<p>November 8: &#8220;No material net credit exposure&#8221;<\/p>\n<p>November 9: We lost $7M<\/p>\n<p>November 10: Okay, we have $175M locked in FTX<\/p>\n<p>November 16: Sorry, no withdrawals or new loans <\/p>\n<p>November 17: Okay, we need $1BN <\/p>\n<p>November 21: We&#8217;ll go bankrupt without the money<\/p>\n<p>\u2014 Cred (@CryptoCred) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoCred\/status\/1594818326282534912?ref_src=twsrc%5Etfw\">November 21, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>Then, at the turn of a switch, it started reassuring the community with conciliatory, PR-perfect public messaging. As I wrote in early December, Silbert spent months dismissing the \u201cnoise\u201d surrounding both his company and the crypto space at large while reassuring investors that despite the crypto winter we were all facing, the company was on track to reach $800 million in revenue and its separate entities were \u201coperating as usual.\u201d<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Will Grayscale be the next FTX?<\/em><\/strong><\/p>\n<p>Here\u2019s the danger: Through Digital Currency Group \u2014 which also owns the asset manager running the world\u2019s largest Bitcoin (BTC) fund, Grayscale, mining company Foundry, crypto investment <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a> Luno and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> outlet CoinDesk, among more than 200 others \u2014 Silbert controls a large portion of the crypto landscape, and so far, he has been somewhat responsible both for keeping spirits up and for keeping panic at bay. <\/p>\n<p>Furthermore, Genesis\u2019 clients include Circle, which operates the stablecoin USD Coin (USDC), pegged to the U.S. dollar, and the Winklevoss-backed Gemini, whose founders have called for Silbert to be removed as CEO. <\/p>\n<p>A first discrepancy \u2014 which, in retrospect, we can perhaps recognize as a huge sign of alarm \u2014 came on Nov. 18, when DCG\u2019s Grayscale stated it wouldn\u2019t share its proof of reserves with customers. A second, very clear indication that something was amiss came on Jan. 5, when Genesis laid off 30% of its workforce \u2014 following a previous August restructuring that saw it cutting its workforce by 20% and CEO Michael Moro stepping down from his leadership position and moving into an advisory role.<\/p>\n<p>\u201cAs we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally,\u201d a spokesperson told Cointelegraph in the wake of the January layoffs. \u201cThese measures are part of our ongoing efforts to move our business forward.\u201d<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Crypto exchanges keep failing, so why do we still trust Changpeng Zhao?<\/em><\/strong><\/p>\n<p>Well, it appears that moving forward won\u2019t be part of Genesis\u2019 future, and perhaps \u2014 unbeknownst to us \u2014 it never was. So, why were investors kept in the dark for so long?<\/p>\n<p>Since the bankruptcy announcement, Genesis\u2019 public statements have shown no remorse, humility or accountability whatsoever. Silbert seems to think he can just move on with a simple \u201cthis is what happened\u201d and not need to acknowledge that errors were made and billions of dollars were lost. That\u2019s unacceptable.<\/p>\n<p>Silbert could, and should, have come clean back in November in the wake of the FTX fiasco. Instead, he kept a low profile for months just when everyone had their eyes on him and declared bankruptcy like a thief in the night, yet again humiliating the crypto world and disappointing the community as a whole. That\u2019s a pretty low blow, and just like in Sam Bankman-Fried\u2019s case, it shows that crypto management needs a complete overhaul. <\/p>\n<p>Sure, Genesis\u2019 case might not be <em>quite as bad <\/em>as FTX, but who knows how long it could have gone on? Who\u2019s to say what such terrible management could be capable of if left alone and undetected?<\/p>\n<p>It\u2019s not in my nature to be pessimistic. I\u2019m young, and so is crypto \u2014 I believe the best is yet to come for the industry, but it won\u2019t be easy, and it will<em> <\/em>require a degree of transparency and accountability that we haven\u2019t yet seen.<\/p>\n<p>If the cascading effect of the crashes of the last few months is anything to go by, Genesis might be the latest firm to collapse, but not the last. We need to keep our eyes open and our instincts <em>en garde. <\/em>If we don\u2019t, we won\u2019t survive, and neither will crypto.<\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Daniele Servadei<\/strong> is the co-founder and CEO of Sellix, an e-commerce platform based in Italy.<\/div>\n<\/div>\n<p class=\"post-content__disclaimer\"><em>This article is for <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> information purposes and is not intended to be and should not be taken as legal or investment advice. 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Against an increasingly disheartening backdrop of \u201cBig Cryptos\u201d going bust, Barry Silbert\u2019s cryptocurrency lender, Genesis Global Holdco, is the latest firm to file for bankruptcy, and if things always come&#8230;<\/p>\n","protected":false},"author":1,"featured_media":544037,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/3e77f801-e9c7-4b8c-81cc-5aae512a1968.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[82372,74863,90192,135234,74864,76550,74866,117],"class_list":["post-544036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-barry-silbert","tag-cryptocurrencies","tag-digital-currency-group","tag-ftx","tag-gemini","tag-grayscale","tag-winklevoss-twins","tag-business"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/544036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=544036"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/544036\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/544037"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=544036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=544036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=544036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}