Gemini Faces Trouble as Genesis Files for Bankruptcy
Gemini, the cryptocurrency platform founded by the Winklevoss Twins, has been dealing with difficulties after its partner, Genesis, filed for bankruptcy. Genesis has now reached an agreement with its parent company to repay its creditors, including Gemini.
Possible Recovery Plan Awaiting Approval
Genesis owes Gemini $1.6 billion, and as a result, Gemini has offered its users an opportunity to vote on a possible exit from the platform. Users will receive instructions on how to vote and access the plan details.
“Earn users will soon receive an email with specific instructions on how to vote on the Plan and a link to the Genesis Solicitation Package, including the Disclosure Statement. The Bankruptcy Court found that the Disclosure Statement contains adequate information to enable Earn users to make an informed judgment about the Plan.”
If approved, all Gemini users will be compensated based on the value of their crypto holdings at the time of Genesis’ bankruptcy filing in January 2022.
Many Users Oppose the Plan
However, many users are unhappy with the proposed repayment plan due to the significant increase in crypto prices since January 2022. Bloomberg analyst Seyffart estimates that users may only receive 61% or less of their crypto’s value at that time.
“How can any of your customers believe a single word you say when you have deceived and lied to us for WELL over a year… Maybe 61%? Maybe 100%? I’m supposed to vote on this? How is this fair? You stole our money. Give it ALL back, every single dollar.”
Hot Take: Gemini Users Disappointed with Proposed Repayment Plan
Gemini’s users are expressing their disappointment and anger over the proposed repayment plan. The plan, if approved, would result in users receiving significantly less than the current value of their crypto holdings. Many argue that they would have earned more by self-custodying their assets and that the promised benefits of using Gemini’s platform are not being fulfilled. The community is demanding a fairer resolution and a full refund of their funds.
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