Gemini Co-Founder's Ultimatum: $1.5B Debt Offer to Genesis Sparks Showdown

 

Gemini Co-Founder's Ultimatum: $1.5B Debt Offer to Genesis Sparks Showdown

Gemini crypto exchange co-founder, Cameron Winklevoss, has issued a "final offer" on the debt-restructuring negotiations concerning Genesis, a bankrupt digital-asset firm. Winklevoss took to Twitter on Monday to share an "Open Letter to Barry Silbert," the founder of Digital Currency Group (DCG), which owns Genesis and Grayscale, a prominent crypto asset manager. Winklevoss expressed his frustration with DCG's delays in developing a satisfactory plan to repay Genesis creditors, including customers of Gemini's Earn program. Furthermore, DCG failed to make a $630 million payment to Genesis.

Accompanying his tweet was a document titled "Best and Final Offer - July 3, 2023," outlining a plan that entails $1.465 billion in payments and loans denominated in dollars, bitcoin, and ether. The deadline to accept this proposal is set for 4 p.m. on July 6, as specified in the letter. In the letter, Winklevoss sternly stated, "I write to inform you that your games are over," emphasizing the unnecessary prolongation of the resolution process, which resulted in professional fees exceeding $100 million. He criticized the allocation of these funds to lawyers and advisors at the expense of creditors and Earn users.

According to a court filing in January, Genesis faced claims totaling over $3 billion from its top 50 creditors, with Earn users accounting for approximately $1.2 billion of the owed amount, as claimed by Winklevoss. Despite attempts to obtain a comment from DCG, there has been no immediate success.

Winklevoss emphasized in the letter that failing to accept the proposed deal by the deadline may lead to legal action against DCG and Silbert personally. Additionally, he suggested exploring the possibility of declaring DCG in default and pursuing an alternative debt-repayment plan that does not require consensus.


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