Gemini Accuses DCG of Fraudulent Activities and Evading Responsibility
In a recent court filing, Gemini, a US-based crypto exchange platform, has accused Digital Currency Group (DCG) of engaging in fraudulent activities and attempting to avoid taking responsibility for the harm caused to creditors. This filing is in response to a statement made by DCG regarding a proposed agreement between DCG, the debtors, and the Official Committee of Unsecured Creditors.
Gemini Seeks Justice for Creditors Affected by Genesis Collapse
Gemini claims that DCG created a $1.1 billion promissory note to hide the significant financial losses caused by the collapse of Three Arrows Capital (3AC). However, the actual terms of the note were allegedly kept hidden, resulting in misleading representations to Gemini’s creditors. Additionally, Gemini asserts that instead of providing much-needed capital, DCG borrowed a substantial amount of Bitcoin (BTC) from the company.
Gemini states that DCG is now refusing to repay over $630 million it borrowed from them several months ago. DCG has proposed a deal that would require Genesis creditors, including Gemini, to extend credit to DCG for years. However, Gemini intends to fight against this proposal and believes that DCG should pay creditors a fair amount.
Rejection of DCG’s Proposed Recovery Rates
Gemini criticizes DCG’s proposed recovery rates, stating that they are misleading and deceptive. The company argues that receiving fractional shares of interest and principal payments over seven years from a risky counterparty is not equivalent to receiving the actual cash and digital assets owned by Genesis. Gemini demands that DCG improve the terms of the loans it provides if it wants the support of the affected individuals.
Overall, Gemini accuses DCG of being responsible for its subsidiary’s insolvency and sacrificing the exchange and its creditors to protect itself from liability. Despite Gemini’s offer of a $100 million premium for a quick resolution, DCG’s delay tactics have hindered progress in distributing funds to Gemini Lenders.
Hot Take: Gemini Fights Against DCG’s Alleged Fraudulent Activities
Gemini, the US-based crypto exchange platform, has filed a court document accusing Digital Currency Group (DCG) of fraudulent activities and attempting to evade responsibility for harming creditors. Gemini claims that DCG created a promissory note to hide financial losses caused by the collapse of Three Arrows Capital (3AC). They also allege that DCG borrowed Bitcoin instead of providing capital and is now refusing to repay over $630 million borrowed from Gemini. Despite DCG proposing a deal requiring credit extension, Gemini plans to fight for fair compensation. The company rejects DCG’s recovery rates as misleading and deceptive and criticizes their delay tactics. Gemini aims to ensure a just resolution for creditors affected by Genesis’ collapse.
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