Gemini, a prominent cryptocurrency exchange and custodian, is currently focused on resolving critical issues surrounding its Earn platform.
With concerns arising from the failure of Digital Currency Group (DCG) to meet payment obligations, Gemini, together with Genesis Global Capital and other parties, is exploring options to prevent default and ensure a consensual resolution. In parallel, Gemini is actively involved in proposing an amended reorganization plan and pursuing the return of over $1.1 billion in digital assets for Earn users.
As per the data of 19 May 2023, The Gemini team has been actively addressing three crucial matters pertaining to Earn this week.
Firstly, Digital Currency Group (DCG), the parent company of Genesis Global Capital, failed to fulfill its payment obligations of approximately $630 million. In light of this, Gemini, along with Genesis, the Unsecured Creditors Committee (UCC), and the Ad Hoc Group of Creditors (AHG), is evaluating the possibility of providing a forbearance to DCG to prevent a default. The decision will depend on whether all parties believe DCG will engage in sincere negotiations for a mutually agreed-upon solution.
Secondly, should negotiations with DCG prove unsuccessful, Gemini, along with other involved parties, is collaborating with Genesis to propose terms for an amended reorganization plan that could proceed without DCG’s consent. In this regard, Genesis filed a motion with the Bankruptcy Court on Friday (5/19) to extend its exclusivity period for proposing such a plan. This plan would incorporate Gemini’s input, if not outright support.
Lastly, Gemini has been diligently preparing the Gemini Master Claim, which is scheduled for filing on Monday (5/22). This claim seeks the return of over $1.1 billion worth of digital assets that Genesis has withheld from the 232,000 active Earn users with loans as of January 19, 2023.
