Gemini co-founder Cameron Winklevoss has delivered a “best and final offer” to Digital Currency Group (DCG) boss Barry Silbert over the Genesis Global Capital saga.
In an open letter, Winklevoss again accused Silbert of failing to honor a $1.2 billion debt owed to Gemini’s Earn program, which DCG subsidiary Genesis helped facilitate.
Gemini Earn offered customers up to 8% interest for crypto loans to borrowers, specifically Genesis. Gemini halted Earn withdrawals after the FTX debacle last November, as Genesis itself was crippled by contagion.
DCG, via Genesis, still owes 230,000 Gemini Earn creditors, Winklevoss has said. Genesis initially owed $3.5 billion to its top 50 creditors alone, with reports indicating the firm had both aggregate assets and liabilities between $1 billion and $10 billion at the time of its Chapter 11 filing.
After months of back and forth between Gemini and DCG — with the latter falling short in settling its $630 million debt obligation to Gemini in May — there’s now a deadline of 4 pm ET on July 6 for the two to discuss a path forward.
Winklevoss tweeted a “best and final offer,” seeking $1.465 billion worth of payments and loans denominated in dollars, bitcoin (BTC) and ether (ETH). There’s $100 million tacked on for professional fees, including lawyers seeking to mediate the process.
According to the proposal, DCG would need to pay $275 million due July 21 for payment forbearance. The second part, dubbed “debt — tranche 1,” would see a further $355 million due within two years and denominated 40% in USD, 40% in BTC and 20% in ETH.
“Debt — tranche 2” would see the remaining $835 million due over five years. The plan includes interest repayment and penalties.
Failing to come to an immediate resolution will result in Gemini pursuing legal action against DCG and Silbert as early as July 7. Winklevoss warned the lawsuit would outline Silbert’s personal liability in “hiding Genesis’s insolvency.”
DCG, Gemini and Winklevoss did not immediately respond to Blockworks’ request for comment.
“You have never had any intention of doing the right thing and taking responsibility for the mess that you, your companies and your employees create with your reckless and fraudulent behavior,” Winklevoss tweeted.
“Instead you have dedicated the last eight months to buying time so you can raise money and stiff creditors and Earn users again.”
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Source: https://blockworks.co/news/winklevoss-dcg-gemini-earn