Following US Securities and Exchange Commission charges against cryptocurrency exchange Gemini and digital currency lender Genesis, Tron founder Justin Sun told reporters he could buy Genesis assets, up to $ 1 billion, “depending on your assessment of the situation.” Additionally, crypto investment manager Osprey has published an open letter to Digital Currency Group’s Barry Silbert in an attempt to take over management of Grayscale’s Bitcoin Trust (GBTC).
Osprey Proposes Changes to Grayscale’s Bitcoin Trust Management in Open Letter to Digital Currency Group
On January 12, 2023, the US Securities and Exchange Commission (SEC) filed charges against cryptocurrency exchange Gemini and cryptocurrency lender Genesis Global Capital. Crypto lender Genesis Global Capital is a subsidiary of Digital Currency Group (DCG). The regulator claims that the two organizations participated in an “unregistered offer”.
The SEC said that about three years ago, Gemini and Genesis gave investors the opportunity to lend crypto assets in exchange for “Genesis’s promise to pay interest.” The SEC’s charges followed two letters written by Gemini co-founder Cameron Winklevoss (letter 1, letter 2) and a recent shareholder letter from Silbert denying the allegations.
The next day, the cryptocurrency investment manager Fishing eagle published a open letter to Barry Silbert, the CEO of Digital Currency Group (DCG). Osprey wants to take over Grayscale Bitcoin Trust (GBTC) as the fund believes that “Osprey is the third best positioned to manage GBTC at the moment.” DCG is the parent company of Grayscale, and Osprey is not the first digital currency fund to offer help; Tennessee-based crypto asset manager Valkyrie Investments is also vying to take over GBTC. Like Osprey, Valkyrie posted an open letter to DCG stating that she is “uniquely qualified” for the position.
In his letter, Osprey detailed that if he took over the management of GBTC, he would change a few things associated with the Bitcoin Trust. “We would reduce the management fee to 0.49% and clean up the fund’s expense structure, which contains significant conflicts of interest,” Osprey said Friday. “We would also look to implement a redemption program as soon as possible.” The digital currency fund manager added:
We would seek a listing on the NYSE immediately, but from a position of collaboration with regulators. For example, we would not participate in any lawsuit against the SEC, but would instead work directly with Congress to inform the SEC of the rationale for approving the fund as a publicly traded ETP.
The company believes it is reaching out a hand to show continued commitment to shareholders. Osprey insists that DCG and Silbert must allow the fund to take over as soon as possible. “We urge you to install Osprey Funds as a sponsor of GBTC immediately, both to protect GBTC holders and to provide confidence to non-DCG affiliated GBTC and Grayscale stakeholders who have an interest in value preservation,” he said. Osprey.
Tron’s Justin Sun Offers to Invest $1 Billion in Digital Currency Group Assets Amid SEC Charges Against Gemini and Genesis
Meanwhile, Tron’s Justin Sun has told Reuters that he is also willing to lend a hand. Sun said he would consider investing $1 billion in Digital Currency Group (DCG) assets, but it depends on the “assessment of the situation.” Sun also offered to help FTX the day before the exchange filed for bankruptcy on November 11, 2022.
At that time, sun saying his team was working around the clock to help alleviate the situation with FTX, and also commented that he was taking steps to help FTX. However, none of the promises were fulfilled and the next day, FTX filed for Chapter 11 bankruptcy protection and Sam Bankman-Fried resigned as CEO.
It is unclear whether or not Digital Currency Group (DCG) or Genesis will accept help from organizations and individuals within the crypto industry. The company did not respond to Valkyrie’s attempt to sponsor GBTC over Grayscale during the first week of the new year.
In addition, Grayscale has participated in a ongoing legal dispute with the SEC denying GBTC to become an exchange-traded fund (ETF). Grayscale believes that if the SEC allowed them to convert GBTC into an ETF, it would allow them to issue and trade Bitcoin Trust shares. grayscale has criticized the commission’s reasoning to a large extent and stressed that the US regulator’s “central premise” is illogical.
What do you think about the ongoing legal disputes and possible management changes proposed by the investment offer from Osprey and Tron’s Justin Sun? Do you think this is a step in the right direction for the cryptocurrency industry or could it lead to more complications? Share your thoughts in the comments below.
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