Winklevoss Makes Final $1.5B Offer in Genesis Bankruptcy Talks

Gemini crypto exchange cofounder Cameron Winklevoss tweeted a “final offer” in the debt-restructuring negotiations over bankrupt digital asset company Genesis, CoinDesk wrote. His offer is $1.5 billion in forbearance payments and new loans and follows months of talks and mediation.

He harps on repayment delays in open letter

On July 3, Winklevoss posted an “Open Letter to Barry Silbert” on Twitter. Silbert is the founder of Digital Currency Group (DCG), which owns Grayscale and Genesis. Recently, Winklevoss labeled the Grayscale Bitcoin Trust a “toxic” product.

In the letter, he complained that DCG was delaying a feasible plan to repay Genesis creditors, including Gemini Earn program customers. What’s more, DCG failed to make a repayment of $630 million to Genesis.

Final acceptance deadline is July 6

The document titled “Best and Final Offer – July 3, 2023” proposes a plan calling for $1.465 billion of loans and payments denominated in US dollars, bitcoin and ether. The offer is valid until 4 p.m. on July 6 according to the letter, which states:

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 advisors at the expense of creditors and Earn users.

Genesis claims to creditors exceed $3B

According to court documents, Genesis’ claims to its main creditors exceed $3 billion. Genesis has at least 50 creditors. According to Winklevoss, Genesis owes Earn customers $1.2 billion.

The consequences of unacceptance

Finally, Winklevoss also wrote about the consequences of failing to reach an agreement on his final offer. If the counterparty doesn’t agree to “the deal” by the deadline, Winklevoss will sue DCG and Silbert personally, try to force DCG into default, and start working on a “non-consensual” plan to repay the debt.