Digital Currency Group Proposes Plan to End Genesis Global Bankruptcy Saga
Digital Currency Group (DCG) has made a groundbreaking move in the ongoing Genesis Global bankruptcy case. According to a recent filing, DCG has put forward a remuneration plan that could bring an end to months of uncertainty for over 230,000 retail creditors. Notably, these creditors, who participated in Gemini’s Earn program, may recover 95-110% of their claims without requiring any financial contribution from Gemini.
DCG’s Promise of Recovery
The proposed plan offers a baseline recovery of 70-90% for unsecured creditors. Additionally, it suggests a significantly higher recovery for Gemini Earn users. If approved, this plan would renegotiate the $630 million loan between Genesis and DCG.
DCG also revealed that repayment for some creditors may be made in digital currencies instead of U.S. dollars, allowing them to benefit from potential cryptocurrency appreciation.
Controversy over Gemini’s Financial Role
This new proposal provides a tangible resolution for beleaguered Gemini Earn customers. It also criticizes Gemini for not contributing financially to their customers’ recoveries, accusing the exchange of not backing its promises.
The terms of the deal include partial cash repayments and a two-year note. DCG’s proposal positions itself as a robust framework that could lead to a full recovery for the majority of claimants without costing Gemini anything.
The plan is pending creditor approval, and DCG believes those with rightful claims, especially Gemini Earn users, should have the opportunity to vote on the deal.
Hot Take: A Potential Lifeline for Genesis Global Creditors
In an industry where asset recovery chances can be slim, DCG’s proposal offers a remarkable outcome. However, the final decision rests with the creditors, who will vote later this year to determine if this plan becomes a financial lifeline for thousands.
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