Gemini Issues An Ultimatum To Genesis And Barry Silbert

By Vince • July 5, 2023 12:38 pm • Comments

The conflict between Gemini and Genesis has once again been thrust into the spotlight.

Genesis, a crypto firm owned by the Digital Currency Group (DCG), declared bankruptcy in the wake of the FTX collapse that occurred in late 2022.

As a result of their exposure to the now-defunct FTX exchange, and the ensuing bankruptcy filing, Gemini—which acted as a creditor to Genesis, and Gemini Earn customers, were left holding the bag.

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Gemini co-founder Cameron Winklevoss outlined $1,456 billion in payments as part of a new plan to make Gemini creditors whole.

He also gave Gemini and Barry Silbert an ultimatum: respond to the deal by July 7, 2023, or face a lawsuit.

Winklevoss penned this ‘open letter’ to Digital Currency Group CEO Barry Silbert and offered his final terms for a resolution to the ongoing financial dispute.

Decrypt outlined the deal:

“Now, as Cameron Winklevoss is claiming, it’s “game over” for both DCG and Silbert.

Constant delays in finding a resolution to the matter, according to him, also “ballooned professional fees to over $100 million, all which have gone to lawyers and advisors at the expense of creditor and Earn users.”

“Enough is enough,” said the Gemini co-founder.”

Ram Ahluwalia dissected the recent letter from Winklevoss and made some predictions:

“The July 6th 4 pm ultimatum date will come and go. DCG will not accept the terms.

1. The proposed term sheet is much farther away than the last TS we saw circulating a few weeks ago

2. DCG would be on the hook for FTX claims exceeding $300 MM. Now, FTX has claims to the tunes of billions… There’s a legal process to assess the validity of those claims. I don’t believe Barry will accept that legal risk.

John Ray would not hesitate to take aggressive action against DCG, unlike the current CEO of Genesis, who may well be conflicted.

3. There are two core issues: (i) lack of trust in DCG and Genesis management, and (ii) asymmetric information on DCG balance sheet (ability to pay).

So creditors can’t assess whether Barry is playing hardball or if his back is up against a wall.

The absence of any equity injection, no debt refinancing, and the May missed debt payments suggest the latter.

I’ll stream a video shortly for deeper analysis. This is all fresh ‘off-the-cuff’ analysis – so stay tuned for more later.”

 

Bitcoin.Com reports:

Meanwhile, in addition to threatening to file a lawsuit as well as a turnover motion, Winklevoss vowed to work with the GSC “to advance a non-consensual plan that adheres to a strict timeline and provides for immediate distributions to creditors and Earn Users.” 

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