Gemini’s co-founder revealed on Twitter the final offer to restructure the debt of the crypto company Genesis: a $1.5 billion package also denominated in Bitcoin and Ethereum.
Summary
Genesis: the $1.5 billion package including Bitcoin to restructure the crypto lender’s debt
Yesterday, Gemini co-founder Cameron Winklevoss revealed on Twitter “the final offer” to restructure the debt of crypto company Genesis.Â
Basically, creditors of the bankrupt crypto lender, Genesis, have proposed a $1.5 billion package that is also denominated in Bitcoin and Ethereum. Specifically, this is a plan for upfront payments and new loans.
This tweet by Winklevoss follows another, “Open Letter to Barry Silbert,” founder of Digital Currency Group (DCG), in which the Gemini twin complained precisely about delays in presenting a satisfactory plan to repay Genesis’ lenders.
It is worth recalling that DCG is the venture capital firm that owns Genesis and also the giant cryptocurrency manager Grayscale.
Genesis’ creditors also include clients of Gemini’s Earn program, for which the twin co-founders are still waiting for payment of the $630 million debt from the crypto broker.
Genesis: crypto broker grappling with plan to repay its debt partly in Bitcoin
The new plan calls for precisely $1.465 billion in payments and loans denominated in dollars, Bitcoin and Ethereum. Examining the letter, it appears that there is a deadline to accept such an agreement, scheduled for 6 July at 4 PM.
Specifically, Winklevoss reportedly wrote in the letter as follows:
“I write to inform you that your games are over. In addition to dragging out a resolution, they have ballooned professional fees to over $100 million, all of which have gone to lawyers and advisors at the expense of creditors and Earn users.”
And indeed, it was from January 2023, six months ago, that news had leaked that Genesis had more than $3 billion in debt.Â
Even at that time, DCG had stated that it was considering selling venture assets to raise funds to resolve the issue.
Among the stated activities was the possibility of DCG selling portions of its venture capital holdings, which include 200 cryptocurrency-related projects, such as exchanges, banks, and depositories in at least 35 countries, with a total value of about $500 million.
At that time, Cameron Winklevoss again shared on Twitter that Genesis’ debts to Gemini’s Earn clients were $900 million.
Involvement by the US SEC
In late May 2023, it appears that Gemini crypto-exchange and crypto-lender Genesis cooperated to jointly file for a motion to dismiss the case brought by the US Securities and Exchange Commission (SEC).Â
In essence, the US SEC would have intervened to charge the two companies over MDALA, the landmark agreement behind the Earn program. According to the government agency, the MDALA could have been an unregistered loan agreement.
An ill-intentioned interpretation by the SEC, which saw lawyers for Gemini and Genesis stepping in together to make the case.
