 One visual asset news my name is Rob and today just like the thumbnail the title suggests we're going to take a look at some concerning Issues that have come out from the Winklevoss twins as they drag in DCG and Barry Silberts and coin desk and gray scale and everything in between and Genesis as they talk about Fraud and greed and the call for Barry the silver at the CEO to step down So let's just jump into it now This was a letter that was updated from a couple weeks ago about a week or so ago We get two weeks where they said hey look we've got some issues with this Gemini earn program Which is what is being used over at? at Gemini people to get some fantastic yields I don't know why they would do that after everything that's been happening, but so much the better and The first letter was pretty much like you need to do something because we can't have our customers stuck like this And Barry Silberts didn't respond too much. They said something that yeah, they're working with it, but of course Now here we go and it looks like nothing is done So this was the open letter to the board at digital currency group and it's a long letter It's like four four pages long or so, but here's the here's the bulk of it Here's what they said like they're just gonna roll through they go look here's what happened Genesis lent 2.36 billion dollars of assets to 3ac. It's a lot of money After collateral was liquidated because everything collapsed Genesis indicated that it was it was left with a loss or a hole Of at least 1.2 billion. It's okay. Not too bad. Actually, you know 2.36 I guess they had a little roughly 50% of that collateral and They just couldn't fill it very sober to legitimate options restructure the Genesis loan book pretty good idea Inside or outside of bankruptcy or fill the 1.2 billion dollar hole Which he didn't either and of course what happens there? Well, the people that are in Genesis earn or excuse me and Gemini earn they're not gonna get paid So the Genesis loan book was approximately 8 billion which means that the 1.2 billion loss from 3ac Would account for roughly 15% that doesn't seem like good money management to loan out 15% to 3ac with some very thin collateral and The different terms of conditions which were also very weak But we'll get to why they did that in a second So Barry DCG and Genesis embark on a carefully crafted campaign of lies to make gentlemen I earn users and other lenders believe that DCG had injected 1.2 billion of actual support into Genesis, but they didn't This was Michael Morrow CEO of Genesis and he said this on July 6th DCG is assumed certain liabilities of Genesis related to 3ac to ensure We have the capital to operate and scale our business For the long term and it sounds good. It's a good statement and how he Verified this or or had solid footing on it was he goes look. This is what we did DCG digital currency group, which is the parent company of Genesis and grayscale and foundry and coin desk entered into a 10-year promissory note with Genesis at an interest rate of 1% due in 2032 so like look We've got all the money. We have it. Don't you worry. Don't sweat it It's just that we're gonna pay it back 1% in that 2032 wouldn't that be great if you do that for the people that you know that you owe money to go look look look look I know you gave me a million dollars, but I'm gonna give you you know 1.2 million in the next 10 years with the real a little bit of a higher rate and it'll be okay Don't you worry. I got that money, baby. You'll be fine So that's what they said and that's how they filled the hole But there's really nothing done and that's pretty much this whole subsection here I link this whole article in the comment section you can read through it, but it gets kind of boring and They said, how do we get here agreed? It's inconceivable that Genesis would have lent so much money to 3.0's capital given the low quality of the collateral that 3ac posted and Just for reference the same thing was done by Voyager. So it's not unbelievable I think everybody got greedy in the bull market which is why I'm trying to separate myself from That mentality of the bull run just stick to the facts look at some technicals and then cash out as time comes on because That's really what saved me the last time now. I didn't sell as much as I should have but it all right So continue on Genesis is betting that the shares will be worth more than bitcoin in the future Up in those 2021 Genesis won the zero-sum trade because grayscale bitcoin trust The shares were worth more than bitcoins Sorry in 2021 Genesis lost this this trade because the shares were worth less and what they're talking about here Is the grayscale bitcoin trust or the grayscale bitcoin nav chart? And you're going to see here that people were paying a fat big fat premium To get into the grayscale bitcoin trust. Why? It's because people who have a lot of money and have no inclination to learn about crypto Or maybe they dabbled into it, but they don't want to custody it They don't want to deal with a ledger. They don't want to deal with the Ponzi schemes They don't want to deal with the rug poles and I get it. I get it. That's why they paid a premium well Past a certain point 2021 It wasn't a premium. Actually you were buying everything on a discount. Why would they do that? Why would grayscale allow this because they were so confident that they were going to get this bitcoin etf And the sec was going to prove it. They were so confident like Don't worry about it because once we get that etf approved Up we go. So even though they're buying at a discount It'll all work out and it didn't work out and it didn't work out and then they sued the sec For not approving the etf and that's going to go through a couple years in court and of course what happens Well, it's cool if you bought down here But chances are a lot of these people who are in grayscale bitcoin trust they bought somewhere around here And that's just the facts Maybe I mean there's obviously people who bought around here obviously, right? But I think there are people over here Going back even further. They paid a lot of money and they're not seeing a lot of returns. So that's what's happening there so to finish up Genesis did not close out the three az's position when the nav trade inverted 2021 it continued to lend a 3ac on attractive terms and accept grayscale bitcoin is collateral Isn't that funny? Let's go. Look, this is our collateral And we can just use that no big deal for a grayscale This had the desired effect of keeping grayscale bitcoin shares from being sold into the market Which would have depressed the share price and further why the discounts to nav Which is what we just take a look at here So If they would have done that if they would have Put these into the market You would have seen this just crater off. I mean, it's already created off already. I mean negative 48 percent on December 12th I mean it's it's rebounded a little bit But when's enough enough So who would enter into a toxic risk position where the best it could be was not lose money Things only begin to make sense and realize that the bitcoin this swap was stuffed in the grayscale trust like a Thanksgiving turkey Is stuck there forever it can never be redeemed. So all these Remember, this is really paper bitcoin. You can't redeem this whatsoever. So if you get into this again, you can't hold it You can't take it off. You can't redeem it. That's just not how this works and that worked fine forever For as long as this trust has been around it's been around for quite some time So if you were able to redeem this now And I guess the question would be well, how much do they actually have do you know much grayscale has? They have 643,572 bitcoin that is three percent of the total supply of bitcoin So what do you think would happen if you're able to redeem all of this and go, you know what? I'm out peace. I'm done I'm not gonna wait. Give my give him my bitcoin Or give him my my fund and we can close it out Don't know if that's Would last and lastly gemini acting on behalf of three and forty thousand earned users request that board the board dcg or board removes berry silver to ceo effective immediately and install a new ceo, which Let's see if that happens, but there is another interesting wrinkle on this right here So if you were able to redeem this it will be interesting times So david bailey he is the ceo at bitcoin magazine He's doing this thing Redemptions he says we've now heard from 2,000 investors are paying 25 percent of the shares And what he's talking about Where did I go? Ah, this is it We've heard from 2100 shareholders Our next milestone of the 8500 Best day yet. Now the number one goal is to secure world-class legal representation And be able to redeem their bitcoin In the last 16 hours over 600 investors are registered on redeem grayscale bitcoin looks like this So you see if you if you have that if you have Shares of grayscale you can register here and if they get the majority then they might be able to force grayscale to allow redemptions And that's not it. There is something even better than this Where they said Here it is This was just a couple of days ago. This is really gains a lot of traction. I didn't even know this was going on So this was just yesterday. Just got out of the phone from the institution Could not be more thankful for the support of our redeem grayscale bitcoin cause. We're now over 20 percent Of all grayscale bitcoin shares. So look if you think this is going away, it's not and uh, this could be a bigger story than Everything combined and I had talked about this before as far as contagion and ftx It all started with ftx and then it rolled downhill with luna And then we had a little celcius. Well, then we had three o's capital action and then we had Celcius then we had voyager block fi and eventually all the The shenanigans that ftx did caught up to them And now there's it's spinning out of control and we have these issues going about for these big large institutions Which would be dcg group and I said I don't know where we're going As far as with the with the crypto market. I sure hope it goes up. I think we got We've got better days ahead of us. That's for sure, but in the short term Not too sure. I mentioned think about that in the comment section We'll talk more with us in the q&a, but then lastly just want to remind everybody that uh, everybody's favorite topic Just kidding. 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That's fine But you do they get a discount just saying You can go to coin ledger.io and again you can sign up for free and just check out how it works And you guys take new cost analysis So that's the story morning glory for everything that's going on today So look like today's video give it a thumbs up subscribe all that good stuff. I got to be quick about this Um Wife is going through some things. So I just want to do just drop in real quick and just talk to you guys So let's do a quick q&a and talk about this stuff. So let's get into it