Silbert, who founded Grayscale in 2013, takes over from Mark Shifke, who will remain on the board as the company prepares for its future as a publicly traded entity. This leadership transition also coincides with Grayscale’s plans to bring in independent directors to strengthen its governance.
In a significant move to bolster its executive team, Grayscale has appointed four professionals with extensive backgrounds in traditional finance (TradFi).
These executives join Grayscale from firms such as Bridgewater, Apollo, Goldman Sachs, and Citadel, reporting directly to CEO Peter Mintzberg, who has been at the helm since last year. Mintzberg stated:
This blend of institutional rigor and entrepreneurial drive shapes every aspect of how we operate at Grayscale, enabling us to deliver clients innovative investment strategies with the operating integrity they expect from a trusted partner.
Around the same time, Silbert’s parent company, Digital Currency Group (DCG), faced legal challenges from New York’s attorney general regarding the collapse of crypto lending company Genesis, and its connections to crypto exchange Gemini’s Earn program, with Silbert himself named in the lawsuit.
When I founded Grayscale in 2013, we saw an enormous opportunity to pioneer a new model for accessing and investing in digital assets, and to build the operational infrastructure that investors would ultimately demand. Today, I continue to have deep conviction in the company’s long-term positioning and in the leadership team guiding it forward.
Earlier this year, DCG reached a $38 million settlement with the US Securities and Exchange Commission over allegations of misleading investors through Genesis Global Capital, a subsidiary of DCG.
The settlement adds to the ongoing regulatory challenges faced by DCG, as New York Attorney General Letitia James has also sued Gemini, Genesis, and DCG over a crypto lending program, alleging they defrauded over 29,000 New Yorkers while concealing $1.1 billion in losses.
Featured image from Fortune, chart from TradingView.com
