Gemini crypto exchange co-founder Cameron Winklevoss has made a $1.46 billion “final offer” to Digital Currency Group (DCG) founder Barry Silbert as part of paying off the latter’s debt.
The head of the trading platform said the “games are over” – users of the Gemini Earn staking service are in “suspense” as more than $1.2 billion worth of assets are stuck in Genesis Global, which is owned by DCG.
“This offer is fair and reasonable for everyone and represents the minimum for creditors to support the deal,” Winklevoss said.
If Silbert does not agree to the terms set before June 6, the head of the exchange threatened to sue.
Previously, DCG, Genesis, the committee of creditors of the crypto lending platform and Gemini agreed to launch a 30-day pre-trial reconciliation process.
The parties are striving to find an acceptable solution to the Genesis agreement proposed in February 2023 with creditors, according to which the latter will be able to return 80% of the lost funds. The agreements provided for the gradual zeroing of the Genesis loan portfolio and the sale of insolvent structures.
However, in May, DCG missed a $630 million compensation payment to the bitcoin exchange. Gemini filed a lawsuit demanding an immediate refund of $1.1 billion for the 232,000 affected users of the Earn service.
Genesis owes more than $3.5 billion in total to its top 50 creditors, including Gemini, Cumberland, Mirana, MoonAlpha Finance and New Finance Income Fund VanEck.
The group’s lending business needed financial support after the June 2022 bankruptcy of cryptocurrency hedge fund Three Arrows Capital.
Recall that on November 6, 2022, Genesis Global Capital froze the withdrawal of funds and the issuance of new loans. The firm cited “increased demand” from customers following the collapse of FTX.
In January 2023, Genesis Global Holdco and its subsidiaries Genesis Asia Pacific and Genesis Global Capital filed for bankruptcy. According to media reports, their liabilities exceed $3 billion.
DCG founder Barry Silbert liquidated 120,000 shares in May ETCGa subsidiary of the holding he leads, worth $755,295.
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