In a decisive turn of events, Cameron Winklevoss, one of the co-founders of cryptocurrency exchange Gemini, has made a final proposal to Barry Silvert, CEO of Digital Currency Group (DCG), to resolve a major financial dispute concerning its Genesis subsidiary. The latter has 2 days to respond favorably, or risk being sued by Gemini.
Cameron Winklevoss makes final offer to DCG
The battle between Digital Currency Group (DCG) and Gemini is about to take a new turn. Cameron Winklevoss, one of the co-founders of the cryptocurrency exchangehas published a « final offer ». to DCG CEO Barry Silvert, convincing him to pay $1.5 billion. Otherwise, Gemini would take legal action.
Earn Update: An Open Letter to @BarrySilbert pic.twitter.com/ErsYpcEjQD
– Cameron Winklevoss (@cameron) July 4, 2023
To provide a little context, hundreds of thousands of customers of the Gemini crypto exchange had grounded for more than $900 million worth of cryptocurrencies in the « Gemini Earn » program designed in partnership with Genesisone of the subsidiaries of Digital Currency Group (which also owns CoinDesk media, Foundry, Grayscale and Luno), offering returns of up to 8%.
Unfortunately, Genesis officially declared itself bankrupt last January following the many events that littered the year 2022, starting with the collapse of Terra (LUNA), leaving its fifty or so creditors in the lurch. with a total owed in excess of $3.4 billion. Gemini remains its largest creditor in terms of amount due.
Cameron Winklevoss, through this » best and final offer « Silbert proposed to Barry Silbert to divide the payment into a first instalment of $275 million, a second instalment of $355 million with a 2-year deadline, and a final instalment of $835 million, this time with a 5-year deadline.
However, DCG’s response is proving difficult to predict, the giant having failed to settle its previous $630 million due to its own Genesis subsidiary last May.
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Cameron Winklevoss doesn’t mince words
Clearly fed up with the situation and the evasions of Digital Currency Group’s CEO – whom he has already criticized on numerous occasions – Cameron Winklevoss doesn’t mince his words in his letter, accusing Barry Silbert of shirking his responsibilities while postponing the inevitable deadline.all the while ignoring his customers:
« Since the day Genesis closed its withdrawal doors, you’ve never had any intention of finding a comprehensive, consensual solution with Earn’s creditors and users. And you never intended to do the right thing and take responsibility for the mess you, your companies and your employees created through your reckless and fraudulent behavior. Instead, you’ve spent the last 8 months buying time so you could raise money and bully creditors and Earn users again. »
If Barry Silbert has not accepted the offer by July 6 at 11pm, Gemini will take legal action against him and DCG the following day..
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Maximilien Prué
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