In the midst of the financial dispute betwixt cryptocurrency exchange Gemini and Digitalย currency Group (DCG), Gemini has alleged that DCG failed to causeย a payment of around $630 Million that was due pastย week. Asย aย result, Gemini has indicatedย that it may extend โforbearanceโ to DCG toย beย ableย to prevent a default.
DCGโs Alleged Missed Payment Adds Fuel to Gemini-DCG Dispute
On May 19, 2023, Gemini announced an update for the companyโs Earn customers, which describes the โprocess of finding a resolution for all Earn users to redeem their assets.โ Andย once the collapse of FTXย Tradingย Ltd spread to Genesis Worldwide Capitalโs lending arm, it influenced Geminiโs Earn program, and Gemini paused the program.
Afterย that issue, Gemini co- founder Cameron Winklevoss shared an open letter onย Twitterย platform in hopes of getting Digitalย currency Group (DCG) CEO Barry Silbertโs attention. In the aftermath of the dispute, it has come to light that Genesisโ parent company, DCG, has allegedly failed to causeย a payment to its creditors.
โDCG, the parent company of Genesis Worldwide Financialย resources, LLC (Genesis) did not pay the approximately $630 Million that came due pastย week. Genesis, the unsecured creditorsโ committee (UCC), the ad hoc group of creditors (AHG), and Gemini are seeingย as whether to provide a forbearance to DCG to avoid a DCG default,โ Gemini wrote. The exchangeโs 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 Financialย resources filed for bankruptcy, and negotiations for payment are now being conducted through the bankruptcy protection process. Gemini has clarifiedย thatย 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 mayย be implemented without DCGโs consent.
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. โThis would be a strategy that would have Geminiโs input if not outright support,โ the update on Friday noted.
