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In a late Monday tweet addressed to Digital Currency Group (DCG) founder Barry Silbert, Gemini co-founder Cameron Winklevoss presented new payment terms to the firm demanding a total of $1.47 billion spread across five years.
Gemini owes its more than 230,000 Earn Program users over $1.2 billion in customer funds that were lent in Genesis Global Capital, a subsidiary of the Silbert-led crypto conglomerate. Genesis filed for bankruptcy protection on January 19, listing claims of bout $3.4 billion to its top 50 unsecured creditors after suspending withdrawals on November 16.
Winklevoss threatened in the July 3 open letter that Gemini will resolve to sue DCG in the event the offer is not accepted by July 6.
“I write to inform you that your games are over. In addition to dragging out a resolution, they have ballooned professional fees to over $100 million, all of which have gone to lawyers and advisors at the expense of creditors and Earn users,” Winklevoss in the letter.
The ‘fair and reasonable' proposal requires that DCG pay a total of $1.465 billion to be settled in Bitcoin, Ether or the US dollar, starting with a forbearance payment of $275 million by July 21. The final figure also includes a missed $630 million payment to its bankrupt lending arm that was due in May.
Gemini has been engaging in court-appointed debt-restructuring talks with Genesis and its parent company DCG without arriving at a resolution. The exchange shared in a June 30 update that the mediation period had been extended to July 5 after experiencing delays in reaching an agreement.
“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,” the exchange team said.
Winklevoss also accused Silbert of committing fraud in the July 3 tweet by knowingly deceiving its creditors last summer that DCG had absorbed losses totaling $1.2 billion, which Genesis incurred following the collapse of Three Arrows Capitals. Far from the assurances, DCG only entered a “long-dated promissory note” to offset the figure and has moved back and forth without making progress on the same.
“It takes a special kind of person to owe $3.3 billion dollars to hundreds of thousands of people and believe […] they are some kind of victim,” Winklevoss protested. “Not even Sam Bankman-Fried was capable of such delusion.”
The Gemini co-founder cautioned that Gemini will proceed with filing a turnover motion putting DCG into default and advance a ‘non-consensual' debt repayment plan if its terms are not accepted.