Gemini’s Winklevoss demands $1.47 billion payment from DCG in ‘final offer’

Quick Take

  • Gemini threatens a lawsuit against DCG and founder Barry Silbert if they fail to accept the offer by July 6.

  • Gemini Earn users are still in limbo with over $1.2 billion trapped in Genesis, Winklevoss says.

Cameron Winklevoss, co-founder of crypto exchange Gemini, issued a “final offer” to Barry Silbert, founder of Digital Currency Group (DCG), to repay a total debt of $1.46 billion or risk a lawsuit.

In an open letter published Monday on Twitter, Winklevoss said that the “games are over” — with Gemini Earn users still stuck in limbo with over $1.2 billion of assets stuck in Genesis Global, which DCG owns.

Winklevoss demanded DCG make payments totaling $1.465 billion, including the US$630 million payment that was due in May. As part of the offer, a payment of $275 million should be made by July 21.

“This proposal is fair and reasonable for everyone and represents the floor that creditors, who are required to support a deal, will accept,” Winklevoss said, adding that if Silbert fails to agree to this deal by 4 p.m. ET on July 6, Gemini will file a lawsuit against DCG and Silbert on July 7.

An ongoing feud

Gemini, which lent customer funds to Genesis as part of its retail Earn program, had previously threatened to file a lawsuit against DCG and its founder after Genesis Global filed for Chapter 11 bankruptcy in January.

DCG, which was caught up the credit crisis that swept crypto last year, has been in negotiations with Genesis creditors, but missed a $630 million payment to Genesis in May.

DCG and Genesis did not immediately respond to The Block’s requests for comment.

In an update on June 30, Gemini said the mediation period has been extended to July 5 to determine the contribution to be made by DCG.

“Gemini is disappointed in how long it has taken to negotiate a DCG contribution and we are committed to pushing DCG to pay what it already owes to Genesis and to compensate the Earn lenders for the role that DCG had in Genesis’s failure to return Earn assets to the Earn users,” Gemini wrote in the update.

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