Following charges by the U.S. Securities and Exchange Commission against the crypto exchange Gemini and the digital currency lender Genesis, Tron founder Justin Sun told the press that he may be able to purchase assets from Genesis, up to $1 billion, “depending on their evaluation of the situation.” Additionally, the crypto investment manager Osprey has published an open letter to Barry Silbert of Digital Currency Group in an attempt to take over the management of Grayscale’s Bitcoin Trust (GBTC).
Osprey Proposes Management Changes to Grayscale’s Bitcoin Trust in Open Letter to Digital Currency Group
On Jan. 12, 2023, the U.S. Securities and Exchange Commission (SEC) filed charges against the crypto exchange Gemini and crypto lender Genesis Global Capital. The crypto lender Genesis Global Capital is a Digital Currency Group (DCG) subsidiary. The regulator claims that the two organizations took part in an “unregistered offering.”
The SEC said that roughly three years ago, Gemini and Genesis gave investors the opportunity to loan crypto assets in exchange “for Genesis’ promise to pay interest.” The SEC charges followed two letters written by Gemini co-founder Cameron Winklevoss (letter 1, letter 2) and a recent shareholders letter by Silbert denying the accusations.
The following day, the crypto investment manager Osprey published an open letter to Barry Silbert, the CEO of Digital Currency Group (DCG). Osprey wants to take over the Grayscale Bitcoin Trust (GBTC) as the fund believes “Osprey is the best-positioned third party to manage GBTC at this point.” DCG is the parent firm of Grayscale, and Osprey is not the first digital currency fund to offer help; the Tennessee-based crypto asset manager Valkyrie Investments is also vying to take over GBTC. Like Osprey, Valkyrie published an open letter to DCG stating that it is “uniquely qualified” for the role.
In its letter, Osprey detailed that if it were to take over GBTC’s management, it would change a few things associated with the Bitcoin Trust. “We would slash the management fee to 0.49% and clean up the expense structure of the fund, which contains significant conflicts of interest,” Osprey said on Friday. “We would also seek to implement a redemption program as soon as possible.” The digital currency fund manager added:
We would pursue a listing on NYSE immediately but from a position of…
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