Cameron Winklevoss, a co-founder of the cryptocurrency exchange Gemini, has issued a ‘final offer‘ to Digital Currency Group’s (DCG) Barry Silbert, demanding a debt repayment of $1.47 billion.
This hefty sum includes a missed $630 million payment due in May and calls for a further $275 million payment by July 21. Gemini threatens to file a lawsuit against DCG and Silbert if the offer is not accepted by July 6.
This showdown comes against the backdrop of the bankruptcy of Genesis Global, a digital-asset firm owned by DCG. Over $1.2 billion of assets belonging to Gemini’s Earn users are currently trapped in the bankrupt firm.
Since Genesis Global filed for Chapter 11 bankruptcy in January, DCG has been engaged in negotiations with creditors, but the resolution process has been slow.
The nonpayment of the $630 million debt in May caused further tension. While a mediation period was extended to July 5 to determine DCG’s contribution, Gemini has expressed disappointment with the delay and the mounting professional fees, which have exceeded $100 million.
If DCG rejects this ‘final offer’, they could face lawsuits and a default scenario. Genesis has reported over $3 billion in claims from its top 50 creditors, with Earn users alone being owed approximately $1.2 billion. As negotiations continue, Gemini is exploring a “non-consensual” debt-repayment plan.
Also Read: Genesis Receives Extension for Filing Bankruptcy Recovery Plan
