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Today’s newsletter goes as follow🔥

• Gemini's Cameron Winklevoss Proposes $1.5B 'Final Offer' for Debt Talks💸

• Voyager's Creditor Committee Faces Mounting Legal Fees💰

• Aptos Jumps 10% overnight 📈

Gemini's Cameron Winklevoss Proposes $1.5B 'Final Offer' for Debt Talks💸

Cameron Winklevoss, the co-founder of Gemini, recently took to Twitter to make a significant announcement regarding the ongoing debt talks involving the bankrupt digital-asset firm Genesis.

The creditors of Genesis have put forward a proposal amounting to $1.5 billion in forbearance payments and loans, denominated in both traditional currency and popular cryptocurrencies such as Bitcoin and Ethereum.

In a letter addressed to Barry Silbert, the founder of Digital Currency Group (DCG), which owns Genesis, Winklevoss expressed his concerns about the delays in formulating a satisfactory repayment plan for Genesis creditors, including customers of Gemini's Earn program.

Furthermore, DCG has missed a payment of $630 million to Genesis, exacerbating the situation.

To bring these negotiations to a resolution, Winklevoss presented a comprehensive plan titled "Best and Final Offer - July 3, 2023." The proposed plan outlines $1.465 billion in payments and loans, encompassing dollars, Bitcoin, and Ethereum.

The deadline for agreeing to this deal is set for 4 p.m. on July 6, as stated in the letter.

Winklevoss emphasized the consequences of failing to reach an agreement within the given timeframe. These could potentially include lawsuits against DCG and Silbert on a personal level, as well as measures to put DCG into default and pursue a "non-consensual" debt-repayment plan.

The repercussions of these debt talks are far-reaching, considering that Genesis listed over $3 billion in claims from its top 50 creditors in a January court filing. Notably, Winklevoss highlighted that Earn users are owed approximately $1.2 billion.

As of now, attempts to reach DCG for comments have been unsuccessful, adding to the anticipation surrounding the outcome of these negotiations.

Voyager's Creditor Committee Faces Mounting Legal Fees💰

Voyager Digital, the crypto lending firm that filed for Chapter 11 bankruptcy in July 2022. As the bankruptcy proceedings continue, Voyager's creditors find themselves burdened by substantial legal fees, while law firms capitalize on the situation.

Recently, the committee representing unsecured creditors of Voyager was charged a staggering $5.17 million in legal fees from March to May by the law firm McDermott Will & Emery.

This expense adds to the mounting cost of legal fees, bringing the total amount for the period from July 2022 to mid-May 2023 to nearly $16.5 million. It's worth noting that around $9 million of this sum has already been paid.

According to the legal filing submitted to the U.S. Bankruptcy Court of New York's Southern District, the "blended hourly rate" for all timekeepers, including attorneys, was listed as $1,026.76.

This sheds light on the significant costs involved in navigating the complexities of Voyager's bankruptcy proceedings.

Voyager's bankruptcy filing was prompted by its exposure to the collapsed crypto hedge fund Three Arrows Capital. In an attempt to salvage the situation, the broker sought potential buyers, including FTX and Binance US.

However, both deals fell through due to various circumstances. FTX itself filed for Chapter 11 bankruptcy, marking the largest bankruptcy the industry has witnessed.

Binance US cited the challenging regulatory climate in the United States as the reason for backing out of a potential deal.

To further complicate matters, the U.S. Bankruptcy Court for the Southern District of New York recently approved a liquidation plan for Voyager Digital.

This plan aims to reimburse the company's customers with $1.33 billion in digital assets. However, the process of implementing this plan has also incurred substantial legal fees for Voyager.

In a twist of fate, while many blockchain companies experienced financial hardships during the so-called "Crypto Winter," lawyers representing these beleaguered firms have benefited from the situation.

Lawyers representing the bankrupt crypto lender Celsius collectively billed the firm $52.8 million in fees from the filing to the end of October last year. The largest casualty, FTX, has incurred over $200 million in legal fees since filing for bankruptcy in November 2022.

I guess the business to be in right now is a crypto law firm 🤣

Aptos Jumps 10% overnight 📈

On Tuesday, Aptos emerged as the top gainer in the crypto market, with a 10% increase in value. The token was last traded at $8.15, according to CoinGecko. This surge can be attributed to a surge in trading volumes in South Korea, where the token traded at a premium.

The trading volumes on Korean crypto exchange Upbit captured nearly one-third of the total volume, with APT trading at a premium of up to 5% compared to other markets.

It is worth mentioning that South Korean traders have previously targeted heavily shorted tokens, including Aptos, in an attempt to trigger short squeezes.

A short squeeze occurs when an asset's price rises, leading traders who had bet against it to buy at a loss or experience forced liquidation. This strategy has been successful in driving up prices as the sentiment among Korean traders is to bid on assets that keep going up.

While the recent rally of Aptos did not coincide with a negative funding rate, which indicates short-side dominance, there was a small spike in short-side liquidations in the derivatives market, reaching a 10-day high.

The funding rate in the perpetual swap market represents a fee or payment exchanged between long (buyers) and short (sellers) positions based on market demand.

Upbit traders have also shown interest in other heavily shorted tokens like Qtum (QTUM) and Celo (CELO), which are among the top ten tokens by trading volume on the exchange.

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Disclaimer: This is not any kind of financial advise. This newsletter is solely informational; it does not constitute investment advice, a solicitation to buy or sell any securities, or a recommendation regarding how to manage your money. Be cautious and conduct your own study, please.