Gemini co-founder Cameron Winklevoss has proposed a final offer, mandating Digital Currency Group’s (DCG) Barry Silbert and his embattled company to start reimbursing Gemini Earn creditors by July 21 or face a lawsuit.
There appears to be a glimmer of hope for victims of the collapsed Gemini Earn program, as Cameron Winklevoss has now given Barry Silbert and his Digital Currency Group (DCG) an ultimatum to pay up the debt owed Earn users or risk a lawsuit.
In a lengthy open letter posted on Twitter during the late hours of July 3, Cameron proposed a final offer, which mandates the DCG team to make a forbearance payment of $275 million on July 21, a $355 million debt tranche in the next two years and an $835 million debt tranche due in five years.
Gemini’s Earn lending and borrowing product hit the rocks last November following the suspension of withdrawals by DCG’s Genesis Global, Gemini’s official Earn product custodian. Genesis had exposure to the disgraced Sam Bankman-Fried’s FTX exchange.
A culture of lies and deceit
In the open letter, Cameron blasted Silbert and his team, accusing them of fostering and architecting a culture of lies and deceit with zero regard for the sufferings of the victims of the crashed Earn product.
“Barry, today marks 229 days since Genesis halted withdrawals and 174 days since I last wrote an open letter to you. As a reminder, I write to you on behalf of 232,000 Earn users who have over $1.2 billion of assets trapped in Genesis, a company owned and controlled by Digital Currency Group (DCG), a company owned and controlled by you.”
Cameron Winklevoss, Gemini exchange co-founder
DCG failed to pay $630 million due to its creditors, including Gemini, raising concerns about a default last May. In June 30 statement, Gemini revealed it had extended the mediation deadline with DCG to July 5 to see whether the latter will make any positive move concerning the reimbursement of Earn creditors.
“Game over. 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 advisers at the expense of creditors and Earn users. Enough is enough.”
Cameron Winklevoss
Barry Silbert and DCG now have until 4 pm ET on July 6, 2023, to accept Gemini’s latest proposal or risk facing serious consequences, which include a lawsuit (to be filed on July 7), and a turnover motion that will mandate the company to pay $630M to Earn users immediately.
