By James Davis
The co-founder of crypto exchange Gemini, Cameron Winklevoss, made a final offer to bankrupt crypto asset company Genesis on Wednesday in relation to the ongoing negotiations for restructuring the repayment plan of the $1.47 billion debt owed to creditors.
Winklevoss sent an open letter to the Digital Currency Group (DCG) founder Barry Silbert, expressing his frustrations with the lack of commitment from DCG in developing an adequate repayment plan for creditors of Genesis. DCG is Genesis’ parent company.
In the letter, Winklevoss also called out Silbert for engaging in what he termed as “fraudulent behavior.” He accused the CEO of constantly telling lies.
Meanwhile, the Gemini co-founder’s offer includes users of the exchange’s Earn program, a service that generated high yield for investors. Genesis was Gemini’s Earn lending partner before the former halted withdrawals last November. Early May, Gemini revealed that Genesis and its parent firm had failed to repay over $600 million in debt, thus defaulting on their obligations.
Winklevoss Says It’s “Game over” for Genesis and DCG
Winklevoss is now saying the time has come for DCG and Genesis to commit to repaying the debt. According to him, the lengthy resolution process has cost over $90 million in professional fees, which could have been channeled to Earn investors and other creditors.
The Gemini co-founder has included a deadline in his offer. He says he will file a lawsuit against Genesis and DCG if they fail to accept that offer by Friday Morning. Winklevoss’ offer explains a 5-year proposed plan on how Genesis should repay its debt. However, he demands that about 50% of the $1.47 billion owed to creditors be paid immediately.
Gemini Co-Founder Says DCG’s Founder Lied to Creditors
According to Winklevoss, Silbert deliberately lied to creditors in June 2022 that DCG and Genesis had recovered the $1.3 billion loss incurred from the downfall of Three Arrows Capital. He argues that this was evident on May 1, when Genesis defaulted on its loan due to financial issues.
The Gemini co-founder now believes that the promissory note signed between his exchange and DCG a few months ago was a way to delay Genesis’ debt repayment.