Winklevoss has now asked DCG to repay a total debt of $1.46 billion or face a lawsuit.
Founder and CEO of Gemini crypto exchange Cameron Winklevoss has penned an open letter to Digital Currency Group (DCG) CEO Barry Silbert. The letter, dated July 3, saw Winklevoss blast Silbert for constantly playing the victim card despite being a real culprit.
According to Winklevoss, the DCG is a business that is built on a “culture of lies and deceit”. Its “fraudulent” acts have come at the expense of Gemini’s 232,000 Earn customers, he added.
For clarity, Earn customers reportedly have over $1.2 billion worth of assets stuck in the bankrupt Genesis Global, which DCG owns.
Winklevoss Lists Demands and Issues Ultimatum to Silbert
As contained in the letter, Winklevoss has now asked DCG to repay a total debt of $1.46 billion or face a lawsuit. The payments will also include the $630 million payment that was due in May.
However, as a sign of good faith, Winklevoss says his firm will accept payments to be made in three installments. The offer asks DCG to make a first payment of $275 million which must be made latest by July 21. There will be an additional payment of $355 million before July 21, 2025. And lastly, an $835 million payment by July 21, 2028, five years from now.
The letter says this is Gemini’s final offer, and if Silbert fails to respond by 4 p.m. ET on July 6, then the two firms will meet in court. Winklevoss wrote:
“This proposal is fair and reasonable for everyone and represents the floor that creditors, who are required to support a deal, will accept.”
Winklevoss and Gemini want the payments to be made in the form of Bitcoin (BTC), Ether (ETH), and the United States dollar (USD). However, it also wants the funds sourced directly from entities it may have been linked with that went bankrupt. These include Genesis, FTX, and Three Arrows Capital (3AC).
The Issue at Hand
Gemini was lending customer funds to DCG’s Genesis as part of its retail Earn program. However, things soon took a wrong turn when DCG got caught up in the credit crisis that swept through the crypto industry last year.
In November, Genesis announced that it was temporarily suspending withdrawals and later filed for bankruptcy on January 19. And since then, Gemini has been seeking to recover its share of the billions that Genesis owes to creditors.
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