The Digital Currency Group (DCG), a leading crypto conglomerate and parent company of Genesis’ lending division, finds itself entangled in the bankruptcy proceedings between Gemini and Genesis. The last few weeks had many fearing that the company might default on a repayment to the bankruptcy estate starting the week of May 9.
This fear was confirmed in a Gemini transparency report when Gemini, a crypto exchange and Genesis creditor, announced on Friday that DCG failed to make a $630 million payment due the week of May 9:
“In the event a deal cannot be reached, Gemini (along with the other parties) is working with Genesis to suggest terms for an amended plan of reorganization that could be advanced without DCG’s consensual participation.”
Earlier in May, Genesis’s creditors agreed to a 30-day mediation period and a court-appointed mediator after a fraction of the creditors distanced themselves from a February reorganization plan. The update read, “Gemini to begin a 30-day process to mediate ‘the contribution to be provided by DCG and its affiliates’ to the Genesis bankruptcy.”
1/ Earn update: This past week, Genesis, Digital Currency Group (DCG), the Unsecured Creditors Committee (UCC), the Creditor Committee, and Gemini agreed to start a 30-day mediation process to drive to a final resolution as soon as possible.
— Gemini (@Gemini) April 30, 2023
Gemini is planning to file a claim against Genesis, stating in the update:
“ Gemini has been preparing the Gemini Master Claim, which must be filed on Monday (5/22). The Gemini Master Claims seeks the return of over $1.1 billion of digital assets that Genesis has refused to return to the 232,000 Earn users who had active loans as of January 19, 2023.”
Genesis, Gemini and groups representing creditors such as the Unsecured Creditor Committee (UCC) are currently discussing whether to grant DCG forbearance, thus providing an avenue for the company to circumvent a default. According to Gemini, part of this decision is contingent upon the parties’ confidence in DCG’s willingness to engage sincerely in negotiations toward a consensual resolution.
A collaboration between Gemini and Genesis on the proposed terms of a new plan will be planned if mediation cannot be reached, as “terms for an amended plan of reorganization […] could be advanced without DCG’s consensual participation.”
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.