The Winklevoss twins’ cryptocurrency company Gemini, Digital Currency Group’s largest creditor, has set Thursday afternoon as the final deadline before pursuing legal action. As a result, the company is running out of time for the company to come to an agreement to restructure its bankrupt crypto lending unit Genesis.
Following the failure of important counterparties, such as FTX, which forced it to halt customer redemptions in November, the lending division of cryptocurrency company Genesis filed for bankruptcy in January. Digital Currency Group (DCG), a venture capital firm, owns Genesis.
Genesis’ lending division had earlier stated that it intended to emerge from bankruptcy by the end of May, but, according to court documents, it has not yet reached an agreement with its creditors, to whom it owes more than $3 billion, on a restructuring plan.
Gemini, which was established by millionaire identical twins Cameron and Tyler Winklevoss, who were also former American Olympic rowers, is its biggest creditor. Gemini is attempting to recover almost $1.1 billion.
Cameron Winklevoss revealed what he called his “best and final offer” in a letter to DCG CEO Barry Silbert that he tweeted on Monday. The deadline for DCG to accept the deal was 4 p.m. EDT (2000 GMT) on July 6.
No more delays or extensions. It is a straightforward yes or no, Winklevoss said in a statement to Reuters.
DCG opted not to respond. A request for comment was not immediately answered by Genesis’ legal counsel. Winklevoss’ prior open letter this year was referred to by DCG as a “publicity stunt” intended to avoid blame from himself and Gemini.
The bankruptcy is being closely observed by the crypto market and has directly resulted in conflicts between some of the most prominent and powerful figures in the crypto industry.
The Winklevoss twins gained fame after suing Mark Zuckerberg, the CEO and founder of Meta Platforms, on the grounds that he had appropriated their idea for Facebook. In 2008, they consented to a settlement for which they were given money and Facebook stock.
According to Silbert, the Connecticut-based DCG has a sizable portfolio of businesses, with more than 200 spread over more than 35 nations. It is the owner of the cryptocurrency asset manager Grayscale and the news and event platform CoinDesk.
Genesis, DCG, and its creditors were required to come up with a restructuring plan by an April court order, and despite many extensions, the parties have not yet reached an agreement. On Wednesday, the current mediation term came to an end.
A $355 million loan tranche that is due in two years, a $835 million debt tranche that is due in five years, and a $275 million forbearance payment are all included in Winklevoss’ restructuring proposal. DCG would keep the money from the sale of Genesis’ loan unit if the proposal were to go through.
If Silbert and DCG are unable to come to an agreement, Gemini will sue them, submit a request to declare DCG in default, and demand urgent debt repayments, according to Winklevoss.
Winklevoss said in the letter that the idea is reasonable and fair for all parties.
