Following months of mediation talks and delays, Gemini chief Cameron Winklevoss proposed his final offer to Digital Currency Group (DCG) over the bankruptcy restructuring of its collapsed subsidiary Genesis. Winklevoss said DCG and its CEO must agree to the deal by July 6, as failing to do so would lead to a lawsuit.
Winklevoss Proposes ‘Best and Final’ $1.47 Billion Offer to DCG
Gemini co-founder and CEO Cameron Winklevoss posted an open letter to DCG and its founder Barry Silbert, in which the billionaire outlined his “best and final offer” for the bankrupt crypto lender Genesis’s bankruptcy restructuring. Winklevoss also said the latest deadline to strike a deal is 4 p.m. Eastern Time on July 6.
In his proposal, Winklevoss listed a $275 million forbearance payment, a $355 million debt tranche set to expire in 2 years, and a $835 million debt trench due in 5 years. As part of the deal, DCG could retain the proceeds from the sale of the embattled Genesis, while funds secured from the disposal of other Genesis companies would go to creditors.
The letter calls for $1.465 billion in payments and loans denominated in Bitcoin and Ether. Winklevoss wrote that failing to repay the debt could lead to legal consequences, stressing that there is no further space for delays and ramifications. If DCG and Silbert disagree with the deal by the provided deadline, Winklevoss told Silbert Gemini would “file a lawsuit against DCG and you personally” on July 7.
Why is Gemini Threatening to Sue DCG and Silbert?
Winklevoss’s letter to DCG and Silbert comes after months of negotiations over Genesis’s bankruptcy restructuring process. The beleaguered digital asset lender, a subsidiary of DCG, froze customer withdrawals in November 2022 following the collapse of FTX.
Following the move, roughly $900 million of user funds owned by Gemini users were locked in Earn, a lending program that allowed them to borrow coins through Genesis to earn yields. Months later, Genesis filed for bankruptcy, revealing $3.4 billion in unsecured claims.
Since then, Genesis, DCG, and the affected investors, including Gemini, have been engaged in court-appointed mediation negotiations. In May, DCG missed a $630 million payment it owes to Genesis, while a month later, the bankruptcy court allowed the parties to devise a revised payout plan.
This article originally appeared on The Tokenist
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