‘Final Proposal’ for Debt Repayment
Cameron Winklevoss, co-founder of the cryptocurrency exchange Gemini, released a letter to Barry Silbert, CEO of the digital currency conglomerate Digital Currency Group (DCG), on the 4th.
Best and Final Offer pic.twitter.com/r7jyhJyKGg
— Cameron Winklevoss (@cameron) July 4, 2023
It has submitted a “final proposal” in negotiations over Genesis, a DCG subsidiary that filed for bankruptcy in January. In the form of repayment for new loans, etc., it will eventually propose to pay Gemini a total of approximately 217 billion yen (approximately 1.5 billion dollars) in US dollars, Bitcoin (BTC), and Ethereum (ETH).
The breakdown is approximately ¥40.5 billion (approximately $280 million) as additional payments in lieu of deferring debt payments, approximately ¥52.1 billion (approximately $360 million) as new loans with a term of two years, and a term of five years. Approximately 121 billion yen (approximately 840 million dollars) is cited as a new loan to
Genesis has stopped withdrawing customer assets since November last year due to the bankruptcy of 3 Arrows Capital (3AC) and FTX. In January of this year, Chapter Eleven filed for bankruptcy.
For this reason, it is currently not possible to withdraw customer assets of the yield service “Earn” of the virtual currency exchange Gemini, which was affiliated.
connection: Gemini Considers DCG Default Avoidance, Significant Debt Repayment Moves
In the letter, Winklevoss reiterated that about ¥174 billion (about $1.2 billion) of Earn user assets were frozen at Genesis.
DCG also concealed its deteriorating financial situation, accusing it of wasting money by prolonging debt negotiations after Genesis filed for bankruptcy. Mr Winklevoss said:
You (Mr. Silbert) had no intention of doing the right thing or taking responsibility for the chaos your company caused by your reckless and fraudulent actions.
Instead, it spent the past eight months trying to buy time and raise money, which kept creditors and Earn users in a tough spot.
Chapter 11 of the U.S. Bankruptcy Code (Chapter 11)
A reconstruction-type bankruptcy legal system similar to the Civil Rehabilitation Law of Japan. The company will be restructured by reducing debts while continuing to operate. Debt collection will be suspended after the application, and the debtor will work on debt consolidation and formulate a reconstruction plan within 120 days in principle.
Plans to sue DCG if no response
Winklevoss added that if Silbert does not accept the final offer by the afternoon of July 6, he will take action, including filing a lawsuit.
On Thursday, it said it would sue DCG and Silbert, alleging that Genesis hid that it was unable to pay its debts.
In addition, he said he would work with Genesis’ special committee to declare DCG in default and to immediately repay the debt of about 91 billion yen ($630 million).
It also asks the Genesis Unsecured Creditors Committee to file a lawsuit to investigate DCG and Genesis’ business-to-business loans.
What is DCG
A major cryptocurrency conglomerate. It has 6 subsidiaries and invests in over 200 blockchain-related startups and over 50 cryptocurrency funds and projects. Major subsidiaries include investment company Grayscale, bitcoin mining company Foundry, Genesis Global Capital, and cryptocurrency media CoinDesk.
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