In a decisive turn of events, Cameron Winklevoss, one of the co-founders of cryptocurrency exchange Gemini, has made a final proposal to Barry Silbert, the CEO of Digital Currency Group (DCG), to resolve a major financial dispute involving its subsidiary Genesis. Silbert has 2 days to respond or face legal action from Gemini.
Cameron Winklevoss makes final offer to DCG
The Digital Currency Group (DCG) and Gemini case is about to take a new turn. Cameron Winklevoss, one of the co-founders of the cryptocurrency exchange, has published a “final offer” to DCG CEO Barry Silbert to convince him to pay $1.5 billion. If he doesn’t, Gemini will sue.
Earn Update: An Open Letter to @BarrySilbert pic.twitter.com/ErsYpcEjQD
– Cameron Winklevoss (@cameron) July 4, 2023
To put things into context, hundreds of thousands of customers of the Gemini crypto exchange had tied up more than $900 million worth of cryptocurrencies in the “Gemini Earn” programme designed in partnership with Genesis, one of the subsidiaries of the Digital Currency Group (which also owns the CoinDesk media as well as Foundry, Grayscale and Luno), and which offered up to 8% returns.
Unfortunately, Genesis officially declared itself bankrupt last January following the many events that have punctuated the year 2022, starting with the collapse of Terra (LUNA), leaving its fifty or so creditors in the lurch with a total debt of over $3.4 billion. Gemini remains its largest creditor in terms of amount owed.
In this “best and final offer”, Cameron Winklevoss proposed to Barry Silbert that the payment be divided into an initial instalment of $275 million, a second 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 subsidiary Genesis last May.
Cameron Winklevoss doesn’t mince his words
Cameron Winklevoss, clearly fed up with the situation and the dodging of the CEO of Digital Currency Group – whom he has criticised on numerous occasions – didn’t mince words in his letter, accusing Barry Silbert of shirking his responsibilities while putting off the inevitable deadline, all the while showing no concern for his customers:
“Since the inception of the company, Barry Silbert has been a major player in the digital currency industry.
Since the day Genesis closed its doors to withdrawal, you have had no intention of finding a comprehensive and consensual solution with Earn’s creditors and users. And you never had any intention of doing the right thing and taking responsibility for the mess that you, your companies and your employees created through your reckless and fraudulent behaviour. Instead, you have spent the last 8 months buying time so you can raise money and bully creditors and Earn users again. “
If Barry Silbert has not accepted the offer by 11pm on 6 July, Gemini will take legal action against him and DCG the following day.
