Gemini Provides Update on Feud with Genesis
Gemini, a digital currency trading platform, has released an update regarding its ongoing dispute with Genesis, a subsidiary of the Digital Currency Group (DCG). Gemini claims that DCG has been involved in a misinformation campaign against them. However, Gemini states that despite the drama, it has been focused on improving the sufficiency of DCG’s contribution to the Genesis estate.
Background on the Agreement with DCG
In August, Gemini reached an “agreement in principle” with DCG and the Unsecured Creditors Committee (UCC) regarding DCG’s contribution to the Genesis estate. However, this agreement was not supported by the broader industry due to concerns about its insufficiency. As a result, creditors are pressuring DCG to introduce a new plan that will maximize value for Genesis’ owed parties.
DCG’s Response and Future Plans
Gemini reveals that DCG has yet to accept the revised terms proposed by its creditors. These terms are set to expire on October 6. If DCG does not accept, Genesis plans to present a new proposal that includes more contribution from DCG or allows creditors to pursue litigation against DCG for the remaining deficit.
The Goal: Making Users Whole
The main goal in this conflict is to ensure that Gemini Earn users are fully compensated. When Genesis filed for bankruptcy earlier this year, it owed around $900 million to Earn customers. The liquidity strain caused by Genesis’ collapse led Gemini to wind down the Earn program. While the timeline for resolving this legal feud is uncertain, Gemini remains committed to updating its community throughout the recovery process.
Hot Take: Gemini vs DCG – A Battle for Compensation
The ongoing feud between Gemini and DCG revolves around securing proper compensation for Genesis’ owed parties. With Gemini focused on improving DCG’s contribution to the Genesis estate, creditors are pushing for a new plan that maximizes value. The ultimate goal is to make Gemini Earn users whole, as they are owed a significant amount of money. Despite the current uncertainty, Gemini remains dedicated to recovering the funds and providing updates to its community along the way.
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