Osprey Vies for Control of Grayscale’s Bitcoin Trust; Tron’s Justin Sun Offers to Invest Up to $1B on DCG Assets – Bitcoin News
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In the wake of U.S. Securities and Exchange Commission charges against crypto exchange Gemini and digital currency lender Genesis, Tron founder Justin Sun told the press that he may be able to buy assets from Genesis for up to a billion dollars, “depending on their assessment of the situation.” In addition, crypto investment leader Osprey has published an open letter to Barry Silbert of Digital Currency Group in an attempt to take control of Grayscale’s Bitcoin Trust (GBTC).
Osprey proposes governance changes to Grayscale’s Bitcoin Trust in an open letter to Digital Currency Group
On January 12, 2023, the US Securities and Exchange Commission (SEC) filed charges against the crypto exchange Gemini and the crypto lender Genesis Global Capital. Cryptolender Genesis Global Capital is a subsidiary of Digital Currency Group (DCG). The regulator claims the two organizations were involved in an “unregistered offer”.
The SEC said that about three years ago, Gemini and Genesis allowed investors to borrow crypto assets in exchange for “Genesis’ promise to pay interest.” The SEC charges followed two letters written by Gemini founder Cameron Winklevoss ( Letter 1 , Letter 2 ) and a recent shareholder letter from Silbert disputing the allegations.
The next day, crypto investment leader Osprey published an open letter to Barry Silbert, CEO of Digital Currency Group (DCG). Osprey wants to take over Grayscale Bitcoin Trust (GBTC) because the fund believes “Osprey is currently the best-placed third party to hold GBTC.” DCG is the parent company of Grayscale, and Osprey is not the first digital currency fund to offer assistance; Tennessee-based crypto asset manager Valkyrie Investments is also in the running to take over GBTC. Like Osprey, Valkyrie released an open letter to DCG stating that it was “uniquely qualified” for the role.
In its letter, Osprey elaborated that if it were to take control of GBTC, it would change a few things about Bitcoin Trust. “We are cutting the management fee to 0.49 percent and cleaning up the fund’s expense structure, which contains significant conflicts of interest,” Osprey said Friday. “We are also working to implement the redemption program as soon as possible.” The digital currency treasurer added:
We aim to list on the NYSE immediately, but in cooperation with the regulatory authorities. For example, we would not engage in lawsuits against the SEC, but would instead work directly with Congress to educate the SEC on the basis for accepting the fund as an exchange-traded ETP.
The company believes in reaching out to show continued commitment to shareholders. Osprey insists that DCG and Silbert should let the fund take over as soon as possible. “We urge you to install Osprey Funds as a sponsor of GBTC immediately to protect GBTC holders and give confidence to non-DCG GBTC and Grayscale stakeholders interested in preserving value,” Osprey said.
Tron’s Justin Sun offers to invest $1 billion in digital currency group’s assets amid SEC charges against Gemini and Genesis
Meanwhile, Tron’s Justin Sun has told Reuters that he too is ready to help. Sun said it was considering investing $1 billion in Digital Currency Group (DCG) assets, but that would depend on “assessing the situation.” Sun also offered to help FTX the day before the stock exchange’s bankruptcy on November 11, 2022.
At that time Sun said his team worked around the clock to ease the FTX situation, and so did he pointed out that he took steps to help FTX. However, none of the promises came true, and the next day FTX filed for Chapter 11 bankruptcy protection and Sam Bankman-Fried resigned as CEO.
It is uncertain whether Digital Currency Group (DCG) or Genesis will accept help from crypto industry organizations and individuals. The company did not respond to Valkyrie’s attempt to sponsor the GBTC with shades of gray during the first week of the new year.
In addition, Grayscale has been involved in an ongoing court dispute with the SEC for prohibiting the conversion of GBTC into an exchange-traded fund (ETF). Shade of Gray believes that if the SEC allowed them to convert GBTC into an ETF, it would allow them to issue and redeem Bitcoin Trust shares. Shades of Gray has strongly criticized the Commission’s reasoning and emphasized that the US regulator’s “central premise is illogical”.
What do you think about the ongoing legal disputes and possible management changes proposed by Osprey and Tron’s Justin Sun investment offer? Do you believe it is a step in the right direction for the crypto industry or could it lead to more complications? Share your thoughts in the comments below.
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