Digital Currency Group (DCG, the parent company of Genesis) is behind on a $630 million payment in compensation to Gemini Earn users. About it reported trading platform co-founder Cameron Winklevoss.
DCG was supposed to transfer the funds between May 9 and May 11.
At the moment, the parties are considering the possibility of prolonging the debt in order to avoid the default of the company. The decision depends on whether the holding continues to “negotiate in good faith on the agreed deal.”
According to the statement, if the terms of the agreement are not met, Gemini will propose a restructuring plan that does not require DCG approval. Gemini has already filed a corresponding petition with the court.
The crypto exchange has also filed a lawsuit seeking an immediate refund of $1.1 billion from Genesis for the 232,000 affected Earn users.
Genesis owes more than $3.5 billion in total to its top 50 creditors, including Gemini, Cumberland, Mirana, MoonAlpha Finance and New Finance Income Fund VanEck.
Previously, DCG, Genesis, the committee of creditors of the crypto lending platform and Gemini agreed to launch a 30-day pre-trial reconciliation process.
The parties are striving to find an acceptable solution to the Genesis agreement proposed in February 2023 with creditors, according to which the latter will be able to return 80% of the lost funds. The agreements provided for the gradual zeroing of the Genesis loan portfolio and the sale of insolvent structures.
The group’s lending business needed financial support after the June 2022 bankruptcy of cryptocurrency hedge fund Three Arrows Capital.
On November 6, 2022, Genesis Global Capital froze the withdrawal of funds and the issuance of new loans. The firm cited “increased demand” from customers following the collapse of FTX.
In January 2023, Genesis Global Holdco and its subsidiaries Genesis Asia Pacific and Genesis Global Capital filed for bankruptcy. According to media reports, their liabilities exceed $3 billion.
Recall that DCG founder Barry Silbert liquidated 120,000 shares in May ETCG Grayscale Investments, a subsidiary of the holding company he heads, worth $755,295.
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Digital Currency Group (DCG, the parent company of Genesis) is behind on a $630 million payment in compensation to Gemini Earn users. About it reported trading platform co-founder Cameron Winklevoss.
DCG was supposed to transfer the funds between May 9 and May 11.
At the moment, the parties are considering the possibility of prolonging the debt in order to avoid the default of the company. The decision depends on whether the holding continues to “negotiate in good faith on the agreed deal.”
According to the statement, if the terms of the agreement are not met, Gemini will propose a restructuring plan that does not require DCG approval. Gemini has already filed a corresponding petition with the court.
The crypto exchange has also filed a lawsuit seeking an immediate refund of $1.1 billion from Genesis for the 232,000 affected Earn users.
Genesis owes more than $3.5 billion in total to its top 50 creditors, including Gemini, Cumberland, Mirana, MoonAlpha Finance and New Finance Income Fund VanEck.
Previously, DCG, Genesis, the committee of creditors of the crypto lending platform and Gemini agreed to launch a 30-day pre-trial reconciliation process.
The parties are striving to find an acceptable solution to the Genesis agreement proposed in February 2023 with creditors, according to which the latter will be able to return 80% of the lost funds. The agreements provided for the gradual zeroing of the Genesis loan portfolio and the sale of insolvent structures.
The group’s lending business needed financial support after the June 2022 bankruptcy of cryptocurrency hedge fund Three Arrows Capital.
On November 6, 2022, Genesis Global Capital froze the withdrawal of funds and the issuance of new loans. The firm cited “increased demand” from customers following the collapse of FTX.
In January 2023, Genesis Global Holdco and its subsidiaries Genesis Asia Pacific and Genesis Global Capital filed for bankruptcy. According to media reports, their liabilities exceed $3 billion.
Recall that DCG founder Barry Silbert liquidated 120,000 shares in May ETCG Grayscale Investments, a subsidiary of the holding company he heads, worth $755,295.
Found a mistake in the text? Select it and press CTRL+ENTER
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