Gemini Challenges Genesis’ Bankruptcy Plan
Gemini, a cryptocurrency exchange, has raised concerns about the bankruptcy plan proposed by Digital Currency Group (DCG) for Genesis, a bankrupt crypto lender. Gemini argues that the plan lacks clarity and crucial information, making it difficult to comprehend. They emphasize the need for a resolution as it has been more than nine months since redemptions were halted and Gemini lenders were denied access to their digital assets.
Main Points:
– Gemini disputes the bankruptcy plan proposed by DCG for Genesis, stating that it lacks clarity and important details.
– The plan suggests that unsecured creditors may receive 70% to 90% of their owed amount in USD, but Gemini questions the transparency of these figures.
– Creditors have not received payments for loans that reached maturity several months ago, amounting to approximately $630 million.
– Gemini argues that despite promises of progress, there is no substantial evidence to suggest the plan’s imminent execution.
Genesis’ Troubles Since FTX Collapse
Genesis has faced difficulties since the collapse of the crypto exchange FTX in November 2022. It was reported that Genesis owed around $3.5 billion to its primary creditors. FTX creditors then sought $4 billion from Genesis, alleging that Genesis moved its assets out of FTX before filing for bankruptcy. FTX further accused Genesis of being instrumental to its fraudulent business model. Genesis claimed to be actively working on restructuring to achieve the best outcome for its clients and stakeholders.
Hot Take
Gemini’s challenge to Genesis’ bankruptcy plan highlights the lack of transparency and progress in resolving the creditors’ claims. The inability to provide substantial evidence and delays in payments raise concerns about the overall handling of the situation. It remains to be seen how this dispute will be resolved and if the creditors will receive the payments they are owed.
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