Cameron Winklevoss, co-founder of the Gemini crypto exchange, has made what he described as a final offer in the debt-restructuring talks over the bankrupt digital-asset firm Genesis. The plan includes $1.5 billion in forbearance payments and fresh loans. On Monday, Winklevoss posted an Open Letter to Barry Silbert, the founder of Digital Currency Group (DCG), which owns Genesis as well as the giant crypto asset manager Grayscale.
In the letter, Winklevoss expressed his frustration with the delays on the part of DCG to come up with a satisfactory plan to repay Genesis creditors, including customers of Gemini’s Earn program. DCG has also missed a payment of $630 million to Genesis. The Best and Final Offer – July 3, 2023 document outlines a plan that calls for $1.465 billion of payments and loans denominated in dollars, bitcoin, and ether. The deadline to agree to the deal is 4 p.m. on July 6.
I write to inform you that your games are over, Winklevoss wrote in the letter. 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. According to Winklevoss, some $1.2 billion is owed to Earn users.
If the deal is not agreed to by the deadline, Winklevoss warned of potential lawsuits against DCG and Silbert personally, as well as pushing to put DCG into default and working on a non-consensual debt-repayment plan.