Barry Silbert has resigned as chairman of the board of Grayscale Investments, the company announced on Tuesday in a filing with the Securities and Exchange Commission (SEC).
Silbert, CEO of Grayscale's parent company Digital Currency Group (DCG), has not publicly commented on the release as of press time. Another Grayscale board member, Mark Murphy, joined Silbert in resigning from the board. Both men's resignations will be effective January 1.
Mark Schiffke, DCG's current CFO, will replace Silbert as Grayscale's chairman, according to the company. DCG Vice President of Operations Matt Kumle and Edward McGee Grayscale CFO have been added to the board.
A Grayscale spokesperson told Decrypt: “In line with Grayscale's commitment to responsible growth, we are pleased to welcome Mark Schiffke, Matt Kummel and Edward Magee to the Grayscale board of directors. “Grayscale and our investors will benefit from their respective experiences in the financial services and asset management industries as the next addition to Grayscale. As we prepare for the chapter.”
A spokeswoman declined to comment further on the reason for the change in leadership at a critical time for Greyscale.
In the next two weeks, analysts predict that the SEC will approve the first-ever Bitcoin ETFs, financial products that allow traditional financial institutions and investors to gain exposure to Bitcoin without holding any cryptocurrency. Grayscale is one of the few companies with a Bitcoin ETF application currently under review by a federal agency.
The approval of Greyscale's Bitcoin ETF application is undoubtedly a watershed moment in the company's history. Analysts estimate that Bitcoin ETF implementations could boost crypto markets by $1 trillion in institutional capital.
Such an event would give parent company DCG 2023 an opportunity to restart Greyscale after the crisis.
In July, New York-based crypto exchange Gemini sued Genesis, a digital asset firm owned by DCG and Silbert, following its chaotic collapse in bankruptcy earlier in the year. Gemini's co-founders, Cameron and Tyler Winklevoss, accused Silbert of lying to them about the safety of Gemini customer funds, some of which were held by Genesis.
There is some progress. In August, the companies announced they had reached an “agreement in principle” to repay the credits. At the time, the deal was described as resolving outstanding issues and a fair recovery for creditors – 70% to 90% in US dollars.
Then, in October, New York's attorney general sued DCG, Genesis, Gemini, Silbert and Genesis' former CEO Soichiro Moro for allegedly defrauding more than 200,000 customers out of more than $1 billion.
It is unclear if Silbert's departure is related to DCG's continued exposure to legal problems. Some analysts speculate that this move could be motivated by the executive himself to clear the way for the grayscale Bitcoin ETF prospects.
Others speculate whether the development could signal a Grayscale sale in the coming year.
Edited by Stacy Elliott.
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