Cameron Winklevoss, the co-founder of the leading cryptocurrency exchange Gemini, has once again sent an open letter to Barry Silbert, the CEO and founder of Digital Currency Group (DCG), offering the latter a final offer before personally filing a lawsuit against him. With over $1.2 billion of assets trapped in Genesis, Winklevoss wrote the note on behalf of 232,000 Earn users affected by DCG’s actions.
The Letter
In the letter dated July 3, Winklevoss accuses Silbert of knowingly misleading creditors, Earn users, and Gemini about DCG absorbing the $1.2 billion in losses that Genesis incurred from the implosion of Three Arrows Capital (3AC) last May.
According to the Gemini founder, DCG absorbed none of these losses. Instead, it entered into a “bogus long-dated” promissory note to make it look like it did so without sending anything to Genesis.
Winklevoss stated that instead of Silbert to cut a deal with creditors to restructure the “term and quantum” of the fake promissory note in a way that is fair and reasonable for everyone, they pretended to go through the motions of negotiating a deal to litigate the note’s viability in court for many years you come.
According to Winklevoss, the delay is a strategic move by Silbert to buy time to repay the $630 million loan DCG owes Genesis. Failure to pay this loan by the due date – May 1, 2023 – will result in DCG default and bankruptcy filing. With a second default and bankruptcy, DCG sought mediation on May 1, 2022.
The Gemini founder stated that these actions had denied creditors, including Earn users, the $630 million they were owed in May. He noted that in addition to “dragging out “the resolution, DCG has paid out a whopping $100 million in professional fees at the expense of these creditors and Earn users.
$1.4 Billion Final Offer
Winklevoss further outlined what he described as his “best and final offer” to DCG. The offer includes a $275 million forbearance payment, a $355 million debt tranche due in two years, and an $835 million debt tranche due in five years.
Winklevoss vowed to file a lawsuit against DCG and its CEO on July 7 if they fail to agree to this deal by 4 PM ET on July 6.
