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Gemini issues final warning to DCG founder, threatening legal action if the money is not repaid, sets up a $1.4 billion repayment plan

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Gemini issues final warning to DCG founder, threatening legal action if the money is not repaid, sets up a $1.4 billion repayment plan

Gemini co-founder Cameron Winklevoss has issued a public letter and repayment plan to DCG and founder Barry Silbert, giving them an ultimatum that if the plan is not agreed upon, legal action will be taken against them after the deadline. Cameron emphasizes his disbelief that Barry Silbert considers himself a victim, even SBF does not have such a delusion.

Chronology of Gemini and Genesis Events

Since November last year, Gemini's liquidity has been affected due to its lending partner for the "Gemini Earn" product being Genesis, which in turn was impacted by the closures of 3AC and FTX. This led to insufficient liquidity for Gemini, prompting the announcement of a suspension of withdrawals for the Earn product.

  • 11/16/2022: FTX event spreads to Genesis, liquidity crisis at Gemini, "Gemini Earn" withdrawals suspended

  • 12/12/2022: 3AC event triggers a chain reaction! DCG takes on $1.1 billion in bad debt, reluctant to let Genesis file for bankruptcy

  • 01/10/2023: Gemini accuses DCG of concealing details of the 3AC loan, CEO Barry Silbert should resign due to accounting fraud

  • 01/12/2023: Gemini founder's open letter to DCG founder: Maliciously delaying debt repayment, burdening Gemini users

  • 01/20/2023: Gemini founder responds to Genesis bankruptcy: DCG cannot escape responsibility, may sue Barry Silbert

It is evident that Genesis and its parent company DCG have not come up with a concrete compensation plan post-bankruptcy. Aside from a slight recovery in the GBTC discount due to the application for a spot ETF, there has been no positive news. FTX restructuring also seeks nearly $3.9 billion in claims from Genesis.

With no progress in sight, Gemini co-founder Cameron Winklevoss has once again issued an ultimatum via Twitter, proposing a $14 billion delayed payment and loan plan.

Gemini's Final Offer

Cameron tweeted an open letter to Barry Silbert on July 4th, along with a repayment solution called the "Best and Final Offer," consisting of 40% USD, 40% BTC, and 20% ETH, totaling $14.65 billion, with a deadline set for July 6th.

Cameron emphasized that failure to agree to this proposal by the deadline may result in legal action against DCG and founder Barry Silbert.

Cameron: Even SBF Never Imagined Himself as a Victim

Cameron stated that his letter is a reminder to Barry Silbert to stop the games, as the delay tactics have cost Genesis over $100 million in legal fees, harming the rights of creditors and Earn users.

In the final paragraph of the open letter, he said:

In the past nine months, I have witnessed many unethical behaviors from you and your colleagues, but perhaps the most unsettling is when you tell me, "You are the victim in all this." How delusional does one have to be to believe or pretend to be a victim while owing $3.3 billion? Even SBF would not have such a misconception. I appeal to you on behalf of all Earn users: "It's time to do the right thing."