TechFlow news — Bitcoin Magazine CEO David Bailey took to Twitter to accuse Barry Silbert, founder and CEO of DCG (Grayscale's parent company), of criminal conduct.
Bailey alleged that Silbert used customer deposits to manipulate and prop up the price of GBTC in order to use it as collateral. He claims it was a criminal act for Silbert to borrow Bitcoin from Genesis clients while fully aware that his companies were insolvent.
Bailey further claimed that in 2022, Silbert spent as much as $500 million to "support the GBTC price," particularly during the collapse of Do Kwon’s Terra/Luna ecosystem. Allegedly, $300 million of that amount came from loans borrowed through Genesis in mid-May 2022, at the height of the Terra/Luna crash.
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