Cameron Winklevoss, the co-founder of Gemini, has made a bold move in an ongoing feud with Digital Currency Group (DCG) founder Barry Silbert.
In a recent open letter on Twitter, Winklevoss issued a “final offer” to DCG, demanding a total debt repayment of $1.46 billion or face the risk of a lawsuit.
The dispute centers around over $1.2 billion of assets belonging to Gemini Earn users, which are currently held in limbo within Genesis Global, a company owned by DCG. This article delves into the details of the dispute and the implications of Winklevoss’s ultimatum.
Gemini, a renowned crypto exchange, had lent customer funds to Genesis Global as part of its retail Earn program.
However, things took a turn for the worse when Genesis Global filed for Chapter 11 bankruptcy in January, leaving Gemini Earn users with their assets trapped in the process. Frustrated with the situation, Gemini threatened legal action against DCG and its founder.
Seeking resolution, Winklevoss made a clear demand to DCG for a payment of $1.465 billion, which includes a $630 million payment that was originally due in May. Additionally, a payment of $275 million should be made by July 21, as part of Winklevoss’s proposal.
He stated that the offer is fair and reasonable for all parties involved, with the creditors’ acceptance as the minimum threshold. However, the clock is ticking, and if Silbert fails to accept the deal by 4 p.m. ET on July 6, Gemini is prepared to take legal action on July 7.
With over $1.2 billion in assets at stake, the conflict has escalated, prompting ongoing negotiations between DCG and Genesis creditors.
DCG, entangled in last year’s credit crisis that affected the crypto industry, has faced difficulties in fulfilling its payment commitments. The missed $630 million payment to Genesis in May further intensified the situation.
Gemini expressed disappointment in the slow progress of negotiations and extended the mediation period to July 5 to ascertain DCG’s contribution.
The exchange is committed to advocating for Genesis’s Earn assets’ return to the Earn users, holding DCG accountable for its role in the failure to do so.