According to a released letter from Gemini CEO Cameron Winklevoss, Gemini Earn users are still “in limbo” because their assets are stuck with Genesis Global, which DCG owns. Winklevoss demanded DCG pay a total of $1.465 billion, including a $630 million payment that was due back in May. Under the renewed proposal, DCG has until July 21 to pay $275 million.<br
“This proposal would be fair and reasonable for all. This is at least some sort of foundation that lenders will take to maintain the deal. The games are over,” Winklevoss said, adding that if Silbert doesn’t agree to the deal by July 6, Gemini will sue him and DCG the next day.
Gemini, which provided client funds to Genesis through its Gemini Earn program, had already threatened to sue DCG after Genesis Global filed for bankruptcy in January. The company faces a liquidity crisis due to the collapse of Three Arrows Capital and the FTX exchange. DCG negotiated with Genesis creditors, but missed a $630 million payment in May. Last week Gemini announced that negotiations with DCG had been extended until July 5.
“Gemini is disappointed in the amount of time it took to negotiate with DCG.. We are ready to make DCG pay what it owes. Gemini Earn creditors should be compensated for Genesis’ failure to recover their assets,” Gemini said.
Recall that DCG Holdings announced in May that it was closing its brokerage subsidiary, TradeBlock, due to the economic crisis and the uncertain regulatory environment.<br