Cameron Winklevoss Makes $1.5 Billion 'Final Offer' to Barry Silbert in Genesis Bankruptcy

Cameron Winklevoss Makes $1.5 Billion ‘Final Offer’ to Barry Silbert in Genesis Bankruptcy

Updated: 04 July 2023

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Billionaire Cameron Winklevoss publicly issued what he called a ”best and final offer” to Barry Silbert for the debt restructuring of bankrupt digital-asset firm Genesis.

In an open letter posted on Twitter on July 4, Winklevoss gives Silbert a maximum of 48 hours to consider the $1.5 billion debt restructuring offer or face a lawsuit. The co-founder of the crypto platform said that Silbert’s Digital Currency Group (DCG), a venture capital firm that is the parent of Genesis, has no “intention of finding a global, consensual resolution” with so-called Earn Users who have over $1.2 million trapped in Genesis.

Genesis filed for Chapter 11 bankruptcy protection in January after admitting exposure to the collapsed FTX crypto exchange.

Earn Update: An Open Letter to @BarrySilbert pic.twitter.com/ErsYpcEjQD

— Cameron Winklevoss (@cameron) July 4, 2023

“Best and Final Offer”

In the letter, Winklevoss gives his final offer to the DCG CEO for the ongoing debt restructuring discussions demanding the venture capital firm make total payments of $1.465 billion over a span of five years. This includes a $630 million loan payment to Genesis that was due in May. As part of the plan, a forbearance payment of $275 million should be made by July 21, followed by a $355 million payment due in two years and a final $835 million payment in 5 years.

Best and Final Offer pic.twitter.com/r7jyhJyKGg

— Cameron Winklevoss (@cameron) July 4, 2023

The structured payment plan specifies that the payments should be made 40% in dollars, 40% in Bitcoin (BTC), and 20% in Ethereum(ETH).

“This proposal is fair and reasonable for everyone and represents the floor that creditors, who are required to support a deal, will accept,” Winklevoss said.

The Gemini co-founder added that if Silbert fails to agree to “this deal by 4 p.m. ET on July 6,” the crypto exchange will take a number of steps, including filing a lawsuit against DCG and its CEO on July 7.

“Enough is Enough” – Winklevoss

Winklevoss’s ultimatum comes as a result of a long-standing feud that began when Gemini lent customer funds to Genesis as part of its retail Earn program. Gemini had threatened to file a lawsuit against DCG after Genesis filed for bankruptcy at the beginning of this year.

6/ Unless Barry and DCG come to their senses and make a fair offer to creditors, we will be filing a lawsuit against Barry and DCG imminently.

— Cameron Winklevoss (@cameron) January 20, 2023

DCG, which has been caught up in a credit crisis, has had a series of negotiations with Genesis creditors but defaulted on a $630 million loan payment in May.

Winklevoss, who had called for the dismissal of Silbert as DCG CEO in January, has called out the executive for constantly delaying a resolution on the repayment of Gemini Earn users. Winklevoss reiterated allegations of fraud against the firm and Silbert.

The Gemini co-founder said Silbert’s 4,000-word letter to shareholders in January was a “Master Class in lack of self-awareness” that shirked all responsibility, adding that it failed to address the very issues that prompted him to write it.

In the letter, Winklevoss said it was game over for Silbert’s shenanigans and delaying tactics, declaring that “Enough is enough.”