Gemini Slams Genesis Bankruptcy Plan, Says Users Won't Recover Lost Funds

Gemini criticizes Genesis and DCG bankruptcy plan, calls it "misleading at best"
Plan says 230,000 Gemini Earn users would be "made nearly whole"; Gemini says they won't recover real value
DCG owes $1.65B to Genesis, which owes $1.2B to Gemini
Gemini lawyers say DCG plan pays "par" recoveries through "inadequate" below-market loans
Gemini and DCG have feuded for months over Genesis' debts; Gemini sued DCG in July

coindesk.com

Relevant topic timeline:

8/21/2023

Crypto Exchange Gemini Slams SEC in New Court Brief in Lawsuit Over Earn Program - The Daily Hodl

Crypto exchange Gemini dismisses the SEC's lawsuit against its Earn program, claiming that the regulatory agency is floundering and contradicting itself in its classification of the program as a security.

8/29/2023

Genesis, DCG Reach Bankruptcy Deal With Unsecured Creditors, But Gemini And Customers Won’t Play Along

Digital Currency Group and its subsidiary Genesis Global have reached a tentative agreement to resolve bankruptcy issues with unsecured creditors, potentially recovering 70%-90% for creditors and 65%-90% for customers depending on the denomination of digital assets, but the deal does not include customers of its investment program or former partner Gemini.

8/30/2023

Genesis Lender Group Opposes ‘Wholly Insufficient’ DCG Deal

Crypto lender Genesis' bankruptcy case is facing opposition from a group of creditors who consider the treatment of outstanding loans to be insufficient, as Genesis and parent company DCG reach a tentative deal.

9/1/2023

Creditors Accuse Genesis of Ballot-Stuffing Over $175M FTX Deal

Creditors of bankrupt crypto lender Genesis Global Capital have criticized a proposed $175 million deal with FTX, accusing Genesis of vote-buying and manipulating the bankruptcy process, further complicating Genesis' efforts to wind up its affairs and return money to customers.

9/13/2023

Genesis bankruptcy deal offers Gemini Earn users 95-110% recovery of funds by end of 2022

Over 230,000 retail creditors who used Gemini's Earn program are expected to recover almost all of their claims under a proposed remuneration deal, which would see them receive approximately 95-110% of their claims, following the bankruptcy filing of Genesis, the company that provided the financial infrastructure for the program.

9/17/2023

Gemini Disputes Digital Currency Group's Bankruptcy Recovery Plan, Says Lenders Won't Recover Assets Owed

Digital asset exchange Gemini accuses Digital Currency Group of using deceptive practices to avoid repaying its obligations to the creditors of Genesis, its bankrupt crypto lending unit.

9/27/2023

Winklevoss Twins Withdrew $280 Million From Crypto Firm Months Before Its Collapse

Gemini co-founders Cameron and Tyler Winklevoss secretly withdrew over $280 million from the crypto company's bank shortly before its collapse, leaving customers unable to access their deposits, raising questions about what they knew and potentially undermining their claims in a pending lawsuit against Digital Currency Group owner Barry Silbert.

9/28/2023

Gemini Withdrew $282M From Genesis Before Collapse to Protect User Assets

Cryptocurrency exchange Gemini has responded to allegations that the Winklevoss twins withdrew $282 million from Genesis Global Capital, stating that the funds were from its Earn users and not their own personal or corporate funds.

Topics

Posted 9/15/2023, 5:22:00 PM