DCGs $630M Payment Default During Genesis Talks Revealed by Gemini

DCGs $630M Payment Default During Genesis Talks Revealed by Gemini

Gemini alleges that Digital Currency Group failed to make a payment of $630 million, adding fuel to their ongoing financial dispute.

In the midst of the financial dispute betwixt cryptocurrency exchange Gemini and Digital currency Group (DCG), Gemini has alleged that DCG failed to cause a payment of around $630 Million that was due past week. As a result, Gemini has indicated that it may extend “forbearance” to DCG to be able to prevent a default.

DCG’s Alleged Missed Payment Adds Fuel to Gemini-DCG Dispute

On May 19, 2023, Gemini announced an update for the company’s Earn customers, which describes the “process of finding a resolution for all Earn users to redeem their assets.” And once the collapse of FTX Trading Ltd spread to Genesis Worldwide Capital’s lending arm, it influenced Gemini’s Earn program, and Gemini paused the program.

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After that issue, Gemini co- founder Cameron Winklevoss shared an open letter on Twitter platform in hopes of getting Digital currency Group (DCG) CEO Barry Silbert’s attention. In the aftermath of the dispute, it has come to light that Genesis’ parent company, DCG, has allegedly failed to cause a payment to its creditors.

“DCG, the parent company of Genesis Worldwide Financial resources, LLC (Genesis) did not pay the approximately $630 Million that came due past week. Genesis, the unsecured creditors’ committee (UCC), the ad hoc group of creditors (AHG), and Gemini are seeing as whether to provide a forbearance to DCG to avoid a DCG default,” Gemini wrote. The exchange’s update added:

Consideration will be based in part on whether the parties believe DCG will engage in good faith negotiations on a consensual deal.

In early 2023, Genesis Financial resources filed for bankruptcy, and negotiations for payment are now being conducted through the bankruptcy protection process. Gemini has clarified that  if a deal cannot be reached, the company and the other parties involved are working with Genesis to propose terms for an amended reorganization strategy that may be implemented without DCG’s consent.

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In the update, Gemini revealed that Genesis filed a motion with the bankruptcy court on Friday to extend its exclusive period to propose a strategy. “This would be a strategy that would have Gemini’s input if not outright support,” the update on Friday noted.


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