Gemini and Fair Deal Group Object to Genesis’ Bankruptcy Resolution
Gemini, a crypto exchange, has raised objections to Genesis’ proposed agreement to resolve its bankruptcy, stating that it lacks detail and fails to provide assurances to its largest debtors. The Fair Deal Group, a set of ad hoc creditors, has also filed an objection on similar grounds. Both parties argue that the proposed agreement does not secure all of Genesis’ owed debts and that Genesis has not demonstrated its ability to confirm a viable plan.
Key Points:
– Gemini argues that the proposed resolution lacks detail and economic consideration.
– The Fair Deal Group raises similar objections and questions the viability of the proposed agreement.
– The Ad Hoc Group of Genesis Lenders also objects to Digital Currency Group’s insufficient role in satisfying loan amounts due.
– All three parties call for an end to the exclusivity period for Genesis’ negotiations.
– Gemini highlights the fact that DCG has not paid approximately $630 million in loans due to Genesis.
Genesis, which shares a parent company with CoinDesk in DCG, filed for bankruptcy in January. The bankrupt lender’s attorneys stated that unsecured creditors could receive up to 90% of the U.S. dollar equivalent of their holdings, although full details were not disclosed.
Hot Take:
The objections raised by Gemini, the Fair Deal Group, and the Ad Hoc Group of Genesis Lenders indicate significant concerns regarding Genesis’ proposed bankruptcy resolution. The lack of detail, economic consideration, and assurances for creditors raise doubts about the viability of the proposed agreement. Additionally, the unpaid loans from DCG further complicate the situation. This development highlights the complexities and challenges faced by cryptocurrency exchanges in navigating bankruptcy proceedings.
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