Digital Currency Group Pushes for Repayment Plan for Genesis Creditors
Digital Currency Group (DCG), the parent company of insolvent crypto lending firm Genesis, is advocating for a repayment plan that includes participants in Gemini Trust Co.’s Earn program. DCG has assured investors in the Earn program that they could potentially receive full reimbursement, or even more, of their initial investment.
Partial Repayments in Bitcoin and Ethereum
The proposed repayment plan involves making partial repayments in Bitcoin (BTC) and Ethereum (ETH). Other unsecured creditors of Genesis may also recover between 70% and 90% of their investments, which is significantly better than expected payouts from other insolvent crypto services.
Skepticism from Gemini Trust Co.
Gemini Trust Co. has expressed skepticism about the proposed repayment plan, citing a lack of concrete evidence to support the recovery percentages. Additionally, DCG’s proposal has not received widespread endorsement from Genesis creditors.
Conflicting Interests
DCG argues that the interests of Gemini Trust Co. and its founders may not entirely align with those of Earn program participants. The Earn program is currently facing a lawsuit from the U.S. Securities and Exchange Commission (SEC) over allegations of an unauthorized securities offering, which both Genesis and Gemini vehemently deny.
Hot Take: DCG Aims to Satisfy Creditors with Repayment Plan
Digital Currency Group is making efforts to address the concerns of creditors by proposing a repayment plan for participants in Gemini Trust Co.’s Earn program. While there is skepticism from Gemini and limited endorsement from Genesis creditors, DCG remains optimistic about potential reimbursements. By offering partial repayments in BTC and ETH and promising higher recovery percentages compared to other insolvent crypto services, DCG aims to appease creditors and demonstrate its commitment to resolving the situation. The ongoing lawsuit with the SEC adds further complexity to the matter, highlighting the conflicting interests between Gemini and Earn program participants. Only time will tell how this dispute will be resolved and if creditors will ultimately receive their expected repayments.
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