On December 26, 2023, the cryptocurrency and finance sector was rocked by Barry Silbert’s unexpected resignation as President of Grayscale Investments. Mark Shifke, CFO of DCG, will replace him as of January 1, 2024. This major transition has far-reaching implications, not least for the future of Grayscale’s crypto ETF and the legal challenges facing DCG. Find out more about this decision and its repercussions in this article.
A Major Change in the World of Finance and Crypto
Barry Silbert, founder and CEO of Digital Currency Group (DCG), is undergoing a major career change. On December 26, 2023, Grayscale Investments, a subsidiary of DCG, announced the resignation of Barry Silbert as President. This strategic decision is closely followed by the appointment of Mark Shifke, DCG’s current CFO, as his successor effective January 1ᵉʳ.
There have been regulatory issues in the world of crypto ETFs. The announcement of Barry Silbert’s resignation comes as Grayscale Investments eagerly awaits approval from the Securities and Exchange Commission (SEC) to transform its Bitcoin Trust (GBTC) into a US-listed ETF (exchange-traded fund). The SEC recently deferred consideration of several crypto ETF applications, including that of Grayscale, BlackRock, Ark 21shares, Vaneck and Hashdex. The first deadline is fast approaching, with a decision expected before January 10.
Legal Challenges for DCG and Barry Silbert
The announcement of Barry Silbert’s resignation comes against a backdrop of complex legal disputes for DCG. In October, New York Attorney General Letitia James filed a lawsuit against DCG, alleging fraud against more than 230,000 investors, including at least 29,000 New Yorkers, to the tune of over $1 billion. Letitia James also accused Barry Silbert of attempting to conceal significant financial losses. DCG and Silbert categorically denied these allegations.
Matt Kummell, Senior Vice President of Operations at DCG, and Edward McGee, CFO of Grayscale, also join the board. A Grayscale spokeswoman said, “In keeping with Grayscale’s commitment to responsible growth, we are delighted to welcome Mark Shifke, Matt Kummell and Edward McGee to Grayscale’s Board of Directors. Grayscale and our investors will benefit from their respective experience in financial services and the asset management industry as we prepare for Grayscale’s next chapter.”
