Digital Currency Group’s recovery plan claims to fully compensate Gemini Earn users News ▸ Gemini ▸ Bankruptcy
Digital Currency Group’s recovery plan claims to fully compensate Gemini Earn users
Gemini Earn may possibly recover up to 110% of their claims against the bankrupt crypto lender Genesis, according to DCG.
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Updated: Sep. 13, 2023 at 4:45 pm UTC
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It has been proposed that Gemini Earn users might recover up to 110% of their claims against the now-bankrupt cryptocurrency lender, Genesis, according to a newly proposed creditor agreement plan filed by Digital Currency Group (DCG) on Sept. 13.
Per the filing, the proposed agreement would provide Genesis’s “unsecured creditors a 70-90% recovery with a meaningful portion of the recovery in digital currencies,” while Gemini Earn users are estimated to recover approximately 95-110% of their claims.”
“DCG is providing creditors the opportunity to capture the appreciation of cryptocurrency up to $85,000 for BTC and $8,500 for ETH, representing more than $1.2 billion in additional potential value or a potential up-side appreciation of more than 100%.”
DCG stated that its estimated recovery for Gemini Earn users is based on the premise that the exchange might not be “contributing a single penny to provide Gemini Earn users a better recovery.” According to the crypto investment firm, if Gemini were to “put its money where its mouth is” by contributing the $100 million it previously promised, then there would be little doubt that its Earn users “would receive more than full recovery.”
Gemini Earn is an interest-bearing product of the exchange that has been at the center of issues since Genesis filed for bankruptcy. The exchange pursued extensive legal action against DCG, the parent company of the lender, on behalf of its more than 200,000 Earn users, alleging that it knew the lender had been bankrupt since 2022 but failed to inform investors.
Earlier in the month, Gemini rejected a proposed settlement deal between bankrupt crypto platform FTX and Genesis, describing it as a “sweetheart pre-plan deal” designed to benefit only DCG at the detriment of other creditors.
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Posted In: Gemini, Bankruptcy
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,305.52
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Gemini
Gemini is a regulated digital asset exchange and custodian that allows customers to buy, sell, store, and stake digital assets in a regulated, secure, and compliant manner.
Genesis
Genesis is an institutional digital asset markets and a full-service digital currency prime brokerage providing a single point of access for select qualified individuals and global institutional investors.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Digital Currency Group
Digital Currency Group’s mission is to accelerate the development of a better financial system.
