• Digital Currency Group (DCG) and Grayscale are under pressure from the Winklevoss twins and a class action lawsuit to return $900 million in customer funds.
• Valkyrie Investments and Fir Tree recently got involved in the dispute, putting more pressure on DCG CEO Barry Silbert.
• Grayscale holds a massive amount of Bitcoin, and also holds large percentages of Ethereum Classic (8.53%) and Horizen (4.64%).
Digital Currency Group and Grayscale, two major players in the crypto space, have recently found themselves at the center of a heated debate. This follows the ultimatum issued by the Winklevoss twins, demanding the return of $900 million in customer funds by January 8th, as well as a class action lawsuit filed against both companies. To make matters worse, two more entities, Valkyrie Investments and Fir Tree, have now joined the fray, putting even more pressure on DCG CEO Barry Silbert.
Grayscale, which is owned by DCG, is the largest cryptocurrency asset manager in the world and currently holds more than 630,000 Bitcoins as part of its GBTC trust. This is causing great concern among investors, as it represents over 3.28% of all Bitcoins in circulation. However, it is not just Bitcoin investors who should be worried. Grayscale also holds a significant percentage of two other altcoins, Ethereum Classic (ETC) and Horizen (ZEN). Specifically, Grayscale holds 8.53% of all Ethereum Classic, or around $189 million, and 4.64% of all Horizen, or around $5.7 million.
The pressure on Silbert and the two companies is mounting day by day, as the Winklevoss twins, Valkyrie Investments, Fir Tree, and the customers themselves continue to put pressure on them to return the funds. Silbert is hoping for Feb. 3rd when a three-judge panel will rule on the complaint against the U.S. Securities and Exchange Commission for refusing to convert GBTC into a Bitcoin spot ETF. Until then, the fate of Digital Currency Group and Grayscale remains uncertain, as the drama unfolds.