Exposing A Controversial Plan, Here’s What Gemini Finds Out
The legal dispute between Gemini Trust and Digital Currency Group (DCG) has intensified as Gemini’s lawyers strongly criticized DCG’s proposed recovery plan for creditors of Genesis Global. Gemini’s legal team discovered a loophole in DCG’s plan, alleging that it contains contrived and misleading assertions. While DCG’s proposal suggests that unsecured creditors could recover between 70% to 90% of their claims, Gemini’s lawyers argue that these figures are a “total mirage” and that DCG is trying to convince creditors to accept less than what they are owed.
Questionable Figures?
Gemini Trust’s legal representatives argue that DCG should significantly improve the terms of the loans provided to Genesis and refrain from using the bankruptcy proceedings as an excuse for inadequate recovery terms. They believe that DCG is attempting to pay creditors less than their owed amounts.
FTX Collapse and Its Ripple Effects
The ongoing legal battle revolves around Gemini’s involvement with Genesis and DCG in the Gemini Earn program. Genesis suspended withdrawals due to market turmoil caused by the collapse of FTX and subsequently filed for bankruptcy. Gemini filed a claim seeking asset recovery for its Earn users and initiated a fraud lawsuit against DCG and its CEO, Barry Silbert.
Gemini Responded DCG Deliberately Delayed the Process
Gemini co-founder Cameron Winklevoss accused Barry Silbert of orchestrating fraudulent activities involving DCG and Genesis against creditors. Gemini argues that DCG’s tactics have hindered fund distribution to Gemini Lenders, despite a $100 million offer for quick resolution from the founders. In January, the SEC also filed a civil suit against Gemini and Genesis for selling unregistered securities.
DCG’s Up To? Going to Resolve?
DCG is proposing to renegotiate a $630 million loan between Genesis and itself, potentially streamlining the process. Some of the loan may be repaid in cash, while the rest could be structured as a two-year note. The plan’s outcome will be determined by a vote from DCG’s creditors. The crypto community eagerly awaits the resolution of this complex legal battle.
Hot Take: DCG’s Proposed Recovery Plan Faces Strong Criticism from Gemini Trust
The legal feud between Gemini Trust and Digital Currency Group (DCG) has escalated as Gemini’s lawyers strongly criticized DCG’s proposed recovery plan for creditors of Genesis Global. Gemini argues that DCG’s plan contains misleading assertions and attempts to pay creditors less than their owed amounts. The ongoing legal battle centers around Gemini’s involvement with Genesis and DCG in the Gemini Earn program, with Gemini accusing DCG and Genesis of fraudulent activities against creditors. As DCG proposes to renegotiate a loan and the fate of the recovery plan lies in the hands of DCG’s creditors, the crypto community eagerly awaits the resolution of this intricate legal battle.
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