Gemini Earn Creditors Face Slashed Bitcoin Payouts in Proposed Reorganization Plan
Creditors of Gemini Earn are unhappy with a proposed reorganization plan that could significantly reduce their expected Bitcoin payouts. The plan, which is up for a vote, states that creditors will receive a payout equal to their Earn crypto balances as of January 19, 2023. However, this means that creditors may only receive around 30% of the current market value of their Bitcoin due to the increase in price since then. Bloomberg analyst James Seyffart described the plan as “brutal.” Commenters on Gemini’s post have urged creditors to vote against the plan.
Fierce Opposition to the Plan
Many commenters have expressed strong opposition to Gemini’s proposed plan, urging creditors to reject it. Some have called it a “spit in our faces” and an “absolute disgrace.” Others have demanded a full refund and expressed their disappointment in Gemini’s deception and lies over the past year. One user said anything less than a full repayment is unacceptable.
Gemini Earn Program and Recovery Process
Gemini Earn was a program where users could earn interest in cryptocurrencies. However, after Genesis Global Capital, Gemini’s lending partner, filed for bankruptcy, Gemini is now seeking to recover $1.6 billion from Genesis for the benefit of Earn users. Creditors have until January 10, 2024, to accept or reject Gemini’s plan, with the bankruptcy court making its final decision on February 14, 2024.
Hot Take: Gemini Earn Creditors Face Significant Losses in Bitcoin Payouts
The proposed reorganization plan by Gemini has left creditors of Gemini Earn disappointed and angered as they face reduced Bitcoin payouts. With the current plan, creditors may only receive around 30% of the current market value of their Bitcoin, which many have described as “brutal.” Commenters have urged creditors to vote against the plan, expressing their frustration and demanding a full refund. The recovery process for Gemini Earn involves seeking $1.6 billion from Genesis Global Capital. Creditors have until January 10, 2024, to decide on the proposed plan, with the final decision being made by the bankruptcy court on February 14, 2024.
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