Creditors Versus Gemini Trust
Gemini Earn creditors are in an uproar about a reorganization plan proposed by Gemini Trust. The plan suggests a significant reduction in Bitcoin payouts, leading to a grim recovery situation for the creditors.
The Controversial Proposal’s Terms
The heart of the controversy is based on the proposal’s terms stating that payouts would be based on their Earn crypto balances as of January 19, 2023 when Genesis Global Capital filed for bankruptcy, which was when Bitcoin and Ether were valued at $20,940 and $1,545, respectively. Since then, their prices have significantly surged.
Gemini’s Public Post
Gemini’s public post on X was met with strong resistance. Users voiced their discontent, accusing Gemini Trust of deceit and demanding full repayment. This represents a broader dissatisfaction among the creditor community.
The Voting Process and Future Outlook
Creditors have until January 10, 2024, to cast their votes on this plan. The bankruptcy court will make the final decision on February 14, 2024. The acceptance or rejection of the plan will significantly impact the creditors, determining their recovery percentage and the timing of any potential distributions.
Gemini Trust has released a comprehensive set of FAQs to assist creditors in making an informed decision about the potential implications, the voting process, and the potential outcomes of the bankruptcy proceedings. The proposal’s acceptance could result in a range of recovery for creditors, estimated between 61% and 100% of the value of their Earn balance as of January 19, 2023.
Hot Take: The Ongoing Vote’s Implications
All eyes will be on the outcome of this vote as it approaches the February 14, 2024, court date and its implications for the future of cryptocurrency lending and investment.
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