Earn Customers Could Recover Up to 110% of Claims in Proposed Deal
A filing on Wednesday revealed that if the proposed deal is approved by creditor groups, Earn customers could recover approximately 95-110% of their claims. The calculation is based on returns from the Genesis bankruptcy estate and over 30 million shares of the Grayscale Bitcoin Trust (GBTC) held by Gemini, worth around $607 million. In addition to these returns, some repayments would be made in-kind, meaning crypto holders would receive cryptocurrency instead of US dollars.
The Digital Currency Group (DCG), which owns both Genesis and Grayscale, plans to file an amended version of the proposed plan by October 6 and aims to confirm a plan by the end of the year. Distributions are expected to be made as quickly as possible after confirmation.
Full Recovery for Earn Customers
According to a DCG executive, Earn customers could receive between $440 million and $765 million in claims. They are estimated to receive distributions of $400 million to $535 million, in addition to the $600+ million collateral held by Gemini. This amounts to a total recovery of a billion dollars or more, essentially providing a full recovery for current customers.
Hot Take: Positive Outlook for Earn Customers
The proposed deal offers hope for Earn customers who may be able to recover a significant portion of their claims. With estimates suggesting potential recoveries of up to 110% and in-kind repayments in cryptocurrency, it presents an optimistic outlook for those affected by the Genesis bankruptcy. The filing indicates that DCG is actively working towards finalizing the plan and aims to expedite distributions after confirmation. Overall, this development brings positive news for Earn customers seeking compensation.
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