In a watershed twist, Cameron Winklevoss, one of the co-founders of cryptocurrency exchange Gemini, has made a final offer to Digital Currency Group (DCG) CEO Barry Silvert to resolve a high-profile financial dispute over its Genesis subsidiary. The latter has 2 days to respond favorably, under penalty of being prosecuted by Gemini.
Cameron Winklevoss makes final offer to DCG
The case between Digital Currency Group (DCG) and Gemini should soon take a new turn. Cameron Winklevoss, one of the co-founders of the cryptocurrency exchangepublished a “final offer” to DCG CEO Barry Silvert to convince him to pay $1.5 billion. Otherwise, legal action will be taken by Gemini.
—Cameron Winklevoss (@cameron) July 4, 2023
To provide some context, hundreds of thousands of crypto exchange Gemini customers had been tied up for more than 900 million dollars of cryptocurrencies in the “Gemini Earn” program designed in partnership with Genesisone of the subsidiaries of the Digital Currency Group (which also owns the CoinDesk media as well as the companies Foundry, Grayscale and Luno), and which offered up to 8% returns.
Unfortunately, Genesis officially declared bankruptcy last January following the many events that littered the year 2022, starting with the collapse of Terra (LUNA), leaving its fifty creditors in the dark. with a total debt exceeding $3.4 billion. Gemini remains its primary creditor in terms of amount owed.
Cameron Winklevoss, through this ” best and latest offer “, proposes to Barry Silbert to cut the payment with a first payment of 275 million dollars, a second of 355 million dollars with a maturity fixed at 2 years and finally a last of 835 million dollars, this time with a fixed maturity at 5.
However, DCG’s response is proving difficult to predict, as the giant failed to settle its previous $630 million owed to its own Genesis subsidiary last May.
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Cameron Winklevoss doesn’t mince words
Visibly tired of the situation and the dodges of the CEO of Digital Currency Group – which he has already criticized on numerous occasions -, Cameron Winklevoss did not go there with the back of the spoon in his letter, accusing Barry Silbert of evading responsibility while pushing back the inevitable deadlineall without worrying about its customers:
“Since the day Genesis closed its withdrawal doors, you never intended to find a comprehensive and consensual solution with creditors and Earn users. And you never intended to do the right thing and take responsibility for the mess you, your businesses and your employees have created through your reckless and fraudulent behavior. Instead, you’ve spent the last 8 months buying time so you can raise money and bully creditors and Earn users again. »
If Barry Silbert has not accepted the offer by July 6 at 11 p.m., Gemini will take legal action against itself and DCG the next day.
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