Grayscale Investments, which has filed an application with the U.S. Securities and Exchange Commission (SEC) to convert the Grayscale Bitcoin Trust (GBTC) into a physical exchange-traded fund (ETF), is a partner of Barry Silver. Barry Silbert has announced that he will step down as chairman and be replaced by Mark Shifke.

The reason for the personnel change was not disclosed.

Grayscale said in an SEC filing that Schiffke, chief financial officer of parent company Digital Currency Group (DCG), will replace Silbert on January 1. However, the reason for the personnel change was not disclosed. DCG President Mark Murphy has also resigned from the board of directors.

The SEC has delayed decisions on some ETF filings, including Grayscale, BlackRock, Ark 21Shares, VanEck, and Hashdex, many until the end of the year. We are currently meeting with regulatory authorities and submitting revised documents. The deadline for the first Ark21Shares application to arrive is fast approaching, with the SEC having until January 10 to approve or deny it.

DCG files suit for fraud

In October, Silbert’s DCG was accused of defrauding more than 230,000 investors, including at least 29,000 New Yorkers, of more than $1 billion (approximately 140 billion yen, equivalent to 140 yen to the dollar). The lawsuit was filed by New York Attorney General Letitia James. James also filed suit against Mr. Silbert, accusing him of defrauding the public in an attempt to conceal large losses. DCG and Mr. Silbert denied the charges.

DCG Senior Vice President of Operations Matt Kummell and Grayscale CFO Edward McGee will also join the board of directors.

“In line with Grayscale’s commitment to responsible growth, we are pleased to welcome Mark Schiffke, Matt Kumel, and Edward McGee to the Grayscale Board of Directors,” a Grayscale spokesperson said. “Scale and its investors will benefit from their respective experience in the financial services and asset management industries as we prepare for Grayscale’s next chapter.”

｜Translation and editing: Rinan Hayashi
｜Image: Barry Silbert (DCG)
｜Original text: Barry Silbert Resigns as Grayscale Chairman, to Be Replaced by Mark Shifke