- Genesis parent company Digital Currency Group (DCG) failed to repay a $650 million debt to Gemini.
- Today, May 22nd, Gemini will file a Gemini Master Claim, aiming to return more than $1 billion in digital assets to acquired users.
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Digital Currency Group (DCG), a major cryptocurrency conglomerate and parent company of Genesis’ lending arm, has found itself embroiled in bankruptcy proceedings between Gemini and Genesis. In recent weeks, many feared that the company would default on payments to the bankruptcy estate starting in the week of May. 9.
This fear Confirmed Cryptocurrency exchange and Genesis creditor Gemini announced on Friday that DCG had defaulted on a $630 million payment due the week of May 9, within Gemini’s transparency report. He said:
“In the event that no agreement is reached, Gemini is working with Genesis (along with other parties) to propose the terms of a modified restructuring plan that can proceed without DCG’s participation in the agreement.”
Earlier in May, Genesis creditors agreed to a 30-day mediation period and a court-appointed mediator after some of Genesis’ creditors walked away from the February restructuring plan. The update read, “Gemini will begin a 30-day process to settle ‘contributions provided by DCG and its affiliates’ against Genesis’ bankruptcy.”
1/ Get the latest: Last week Genesis, Digital Currency Group (DCG), Unsecured Creditors Committee (UCC), Creditors Committee and Gemini launched a 30-day arbitration process towards a final resolution agreed. Possible.
— Gemini (@Gemini) April 30, 2023
Gemini plans to file a lawsuit against Genesis, stating in an update:
“Gemini is preparing for the Gemini Master Claim which should be submitted on Monday (5/22). Gemini Master’s claim calls for the 232,000 Earn users who had loans as of January 19, 2023 to return more than $1.1 billion in digital assets that Genesis has refused to return. . ”
Bodies representing creditors, such as Genesis, Gemini, and the Unsecured Creditors Committee (UCC), are currently debating whether to grant DCG reprieve to provide the DCG with the means to avoid default. . Part of the decision, Gemini said, will depend on the parties’ confidence in the DCG’s good faith commitment to negotiations for a consensual settlement.
If mediation is unsuccessful, Gemini and Genesis are planned to work together under the terms of the proposed new plan, under the terms of the revised restructuring plan. […] May proceed without DCG’s consent or participation. ”