Gemini says Digital Currency Group missed loan payment
Gemini's tussle with Digital Currency Group over debts unpaid appear to be coming to a head.
Driving the news: The crypto exchange founded by Cameron and Tyler Winklevoss said that Barry Silbert's DCG did not pay roughly $630 million due last week, according to a statement published Friday on Gemini's website.
The intrigue: Gemini, along with DCG unit Genesis and two different groups of creditors involved in Genesis's bankruptcy proceeding, are considering providing "forbearance" or temporary financial relief for DCG — that is if "the parties believe it will engage in good faith negotiations on a consensual deal."
- Otherwise, Gemini and Genesis will come up with a different plan for reorganization without DCG's "consensual participation," the crypto exchange said.
- Genesis in an emailed statement to Axios said that it was "working collaboratively" to address Digital Currency Group’s nonpayment.
Context: DCG, its unit Genesis Global Capital and Gemini have been locked in contention since FTX's collapse, which caused something of a chain reaction that put retail investors in the Winklevoss twins' crypto exchange Earn program in the lurch.
- Catch up quick: Genesis and Gemini are teaming up against DCG, with talks around a previously floated restructuring plan stalled.
- Laura Shin of the Unchained podcast earlier this month said mediation was out of the question, citing sources close to the matter.
The other side: "DCG continues to be engaged with the various stakeholders in the Genesis Capital restructuring process pursuant to the 30-day mediation period entered into by all parties on May 1," a DCG spokesperson said in a statement.
- DCG in its own update earlier this month said it was looking to refinance its debt and raise capital.
Quick take: The debtor of my debtor is my friend.
Editor's note: This report has been updated to include a statement from Genesis.