It’s Not A Question Of Ethics Or Fraud’: Greyscale CEO On Genesis

Founder of X 3, Andrew tweeted about the “unique level of cognitive dissonance” in YouTube channel ‘What Bitcoin Did’s” recently interview with Grayscale CEO Andrew Sonnenshein. “This is legal gaslighting,” Andrew claimed.

A lack a self-awareness moment from @Sonnenshein in this interview:

“It’s not a questions of ethics. It’s not a question of fraud.”

This is legal gaslighting.

— Andrew (@AP_Abacus) February 25, 2023

Channel host Peter McCormack started the episode by asking Sonnenshein to explain what the Grayscale Trust is. Sonnenshein explained that Grayscale is the world’s largest digital currency manager, handling almost $21 billion and managing 17 digital asset products under its management including Bitcoin and Ethereum-based products.

The interview moves to the topic of ETFs and how it is different from a Trust. In response, Sonnenshein says that the Grayscale Bitcoin Trust had always anticipated that it would become an ETF since its launch in 2013.

He continues that investors across the UK and US always use ETFs, which are “instruments that investors can purchase in their brokerage or retirement accounts to gain exposure” to a variety of highly-valued assets such as gold, stocks, oil, and so on.

However, in the US, Sonnenshein explains, regulators have not allowed Bitcoin ETFs to enter the market. Nevertheless, Grayscale is on a mission to solve that, according to the CEO. He adds that The Grayscale Bitcoin Trust is a series of shares that investors own. Each of those shares are fully backed by Bitcoin, “no cash, no leverage, or trade.”

McCormack then questions Sonnenshein on the Grayscale vs SEC lawsuit, to which the CEO replied with “what we have seen in the US, has historically been, no Bitcoin ETFs in the market.” Moreover, Sonnenshein shares that the SEC’s attitude reflects that they are against Bitcoin ETFs and didn’t allow GBTC, which led to Grayscale to sue the SEC after the rejection.

While the interview explored deeper conversations surrounding GBTC ownerships, Sonnenshein commented on the Grayscale, Genesis, and DCG inter-company ethics saying,

It’s not a question of ethics. It’s not a question of fraud. I can’t be responsible for what has taken place at Genesis.

As per Sonnenshein, if any customer who has become a Grayscale client by taking a loan from Genesis is no longer active in business or has shut down their funds, it is a result of the misappropriation of their mismanagement.

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