Cameron Winklevoss, the co-founder of cryptocurrency exchange Gemini, made a “final offer” to Barry Silbert, founder of Digital Currency Group (DCG), demanding that the latter should settle an overall debt of $1.46 billion or face a lawsuit.
Gemini Says that the Games are Over
As per an open letter posted on Twitter on Monday, Winklevoss stated that the “games are over,” with Gemini Earn members still stranded with over $1.2 billion in assets in Genesis Global, which DCG owns.
A ‘Fair and Reasonable’ Proposal
He asked for $1.465 billion as a payment from DCG, which comprises the US$630 million amount that was due in May. A payment of $275 million is required as a condition of the proposal by July 21. If Silbert refuses to concede to the aforementioned settlement by 4 p.m. ET on July 6, Gemini will file suit against DCG and Silbert on July 7.
Winklevoss noted: “This proposal is fair and reasonable for everyone and represents the floor that creditors, who are required to support a deal, will accept.”
Gemini Aims to Sue DCG
Notably, Winklevoss stated at the beginning of the year that the company planned to sue Digital Capital Group (DCG) and its CEO, Barry Silbert, for the $900 million owed to Gemini clients.
In December 2020, Gemini and Genesis entered a contract to make the yield-bearing crypto product available to the exchange’s users. This then started in February 2021 and officially ended on January 8, 2022.
A Failed Agreement
In accordance with the terms of the agreement, Gemini customers could lend their bitcoin to Genesis with the certainty that Genesis would repay the loan with interest. However, Genesis blocked withdrawals on November 16 after suggesting that approximately $175 million was stored at FTX and citing “unprecedented market turmoil.”
In addition, the Securities and Exchange Commission (SEC) charged Gemini and Genesis Global Capital with marketing unregistered securities through the exchange’s “Earn” project. However, Tyler Winklevoss has criticized the regulatory agency for charging the exchange for offering unregistered securities, calling the claims “super lame” and “a manufactured parking ticket.”