Gemini threatens DCG with default if the company does not return the money
Date: 2023-07-04 Author: Karina Ziganova Categories: BUSINESS
Gemini co-founder Cameron Winklevoss has made a $1.46 billion "final offer" to Digital Currency Group (DCG) founder Barry Silbert to pay off debts.
In the letter, Winklevoss regrets DCG's delays in developing a debt repayment plan to Genesis creditors, including Gemini's Earn program customers.
"In addition to delaying the decision, they increased professional fees to more than $100 million, and all of them went to lawyers and consultants at the expense of creditors and users of Earn," the letter said.
The total includes a missed payment of $630 million, which was due in May, and requires payment of another $275 million by July 21. Gemini is threatening to file a lawsuit against DCG and Silbert if the offer is not accepted by July 6.
According to him, users of the Gemini Earn staking service are in "limbo" as $1.2 billion worth of assets are stuck on the platform of DCG's subsidiary, Genesis.
"This offer is fair and reasonable for everyone and represents the minimum for creditors who should support the deal," Winklevoss said.
In May, Gemini accused DCG of $630 million in arrears, and the platform, along with Genesis, a committee of unsecured creditors, and a special group of creditors, will now discuss whether to grant DCG a grace period so that the company can avoid defaulting on its obligations.
In a January lawsuit, Genesis listed more than $3 billion in claims against its 50 largest creditors. According to Winklevoss, Earn users owe about $1.2 billion, and he also accused DCG's management of defrauding 340,000 customers of the exchange. Later, Gemini terminated loan agreements with Genesis and closed the Gemini Earn cryptocurrency lending program, of which Genesis was a partner.
