The aftermath of FTX’s collapse sent ripples across the crypto industry, and the fallout is still being felt almost a year after the exchange’s failure. FTX co-founder and former CEO Sam Bankman-Fried has recently been found guilty and is awaiting sentencing.
Meanwhile, according to Bitcoin author Vijay Boyapati, a much larger and more complex fraud took place in 2022 but has largely been overlooked by mainstream media. Boyapati recently took to social media platform X (formerly Twitter) to explain in a lengthy thread the details of this alleged fraud committed by DCG and its CEO, Barry Gilbert.
Genesis Fraud Exposed: The Truth About Barry Silbert’s DCG Empire
Boyapati describes in his exposé how Digital Currency Group and its affiliates falsely represented to creditors that Genesis, a cryptocurrency brokerage, was solvent months before it filed for bankruptcy amid the FTX debacle.
After the fall of FTX in November 2022, many cryptocurrency companies, including Genesis, announced that they would be filing for bankruptcy. However, Boyapati alleges that the corporation had been insolvent since the middle of June 2022 after the collapse of the Terra Luna ecosystem but Genesis’ senior executives employed an elaborate scheme to paper over the losses on the company’s balance sheet.
1/ There was a much more important fraud than SBF’s embezzlement that took place in 2022. It was a fraud (allegedly) perpetrated by one of the oldest companies in the space, @DCGco and its CEO, @BarrySilbert.
Time for a
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Author: Scott Matherson
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