Winklevoss Makes “Final Offer” to DCG Over Genesis’ Debt
- Cameron Winklevoss, co-founder of crypto exchange Gemini, proposed a plan that would see Digital Currency Group pay close to $1.5 billion over the next five years.
- The Winklevoss twin said that if the “final offer” is not accepted by the end of the week, Gemini would file a lawsuit against DCG and CEO Barry Silbert.
Gemini founders Tyler Winklevoss (L) and Cameron Winklevoss (R) onstage during TechCrunch Disrupt, New York, May 6, 2015. Noam Galai/Getty Images for TechCrunch
Gemini co-founder Cameron Winklevoss warned Barry Silbert, CEO of Digital Currency Group (DCG), that he will be facing a lawsuit if the exchange’s “best and final offer” is not accepted by the end of the week.
The Winklevoss twin issued an open letter to Barry Silbert on 4 July, blasting the CEO of DCG — which owns bankrupt crypto lender Genesis — for the delays in coming up with a plan to repay Genesis creditors, which include 232,000 Gemini Earn customers. The letter also alleges that DCG had engaged in “fraudulent behavior”, and that its CEO had intentionally delayed the implementation of a resolution through the “abuse” of the mediation process.
Cameron Winklevoss also tweeted Gemini’s “best and final offer” for a resolution, proposing that DCG pays close to $1.47 billion in several transactions over a five-year period. The plan calls for DCG to make a $275 million payment by 21 July, another $355 million before 21 July, 2025, and a final payment of $835 million by 21 July 2028. Winklevoss also said that if the “final offer” is not accepted by 4 pm on 6 July, the exchange will file a lawsuit against Silbert and DCG on 7 July. Winklevoss’ letter reads:
“I write to inform you that your games are over. In addition to dragging out a resolution, they have ballooned professional fees to over $100 million, all of which have gone to lawyers and advisors at the expense of creditors and Earn users. Enough is enough. This proposal is fair and reasonable for everyone and represents the floor that creditors, who are required to support a deal, will accept.”
Crypto exchange Gemini lent customer funds to Genesis through its retail Earn program — which promised customers returns as high as 8% — however all of that stopped on 16 November last year when Genesis announced it had suspended withdrawals. The crypto lender filed for bankruptcy in January, and since then Gemini has been trying to recover around $1.2 billion in customer funds from Genesis.
- A little over $13 million in altcoins were sent to crypto exchanges Binance and Coinbase in the past 24 hours, which is in accordance with a September court order.
- The court ordered a phased liquidation process, which allows the bankruptcy estate to sell $3.4 billion worth of digital assets over a certain period of time.
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- An investigation from the New York Attorney General’s office has allegedly found that Gemini was aware of Genesis’ weak financial position, but still lied to investors.
- The lawsuit is looking to ban DCG, Genesis, and Gemini from the New York financial industry, seek restitutions for investments, and the return of “ill-gotten gains”.
- The bankrupt crypto lender said that if its reorganization plan is approved, it is ready to start repaying its customers using $2 billion in BTC and ETH by the end of the year.
- If given the green light, Celsius will restart its business under the “NewCo” brand without any funded debt, and with seed funding of up to $450 million.