Gemini: Genesis considering submitting new proposal for creditor compensation on October 6

Odaily星球日报 · 2023-10-02T05:13:05.000Z

Odaily Planet Daily reported that in response to the issue of asset compensation for users of the Gemini Earn plan, the cryptocurrency exchange Gemini issued a document stating that as early as August, the company reached a "principle agreement" with DCG and the Unsecured Creditors Committee (UCC) on DCG's investment in Genesis properties. . Gemini said the agreement did not have the full support of the wider industry in principle as experts believed it was insufficient. With the matter a "dead end" from the start, creditors are now pressuring DCG to launch a plan to help Genesis repay as much of its debt as possible. Gemini said the company is currently under duress from creditors and DCG has not yet accepted the revised terms, which are due to expire on October 6. Genesis is considering submitting a new proposal on October 6 that could allow DCG to increase its capital contribution or allow existing assets in the Genesis estate to be distributed and allow creditors to recover the remaining outstanding assets through litigation against DCG. (CoinGape) Previously, Gemini Trust lawyers opposed the new creditor agreement proposed by DCG. The plan stated that unsecured creditors may receive 70%-90% compensation, and Gemini Earn users may receive 95%-110% compensation. The legal team said: "In order to divert the attention of Genesis creditors from its apparently inadequate and unfair proposal, the recovery rate proposed by DCG is falsely advertised. Under the current 'agreement in principle', creditors will not actually receive anything close to the proposal. The real value of the recovery rate.” In addition, Gemini withdrew approximately $282 million from Genesis in August 2022, months before Genesis froze deposits and eventually filed for bankruptcy. It said that the funds withdrawn from Genesis were used to build reserves to ensure that Gemini Earn customers could immediately redeem, and did not flow directly to the Winklevoss brothers, the founders of Gemini.

Odaily Planet Daily News Regarding the compensation of user assets in the Gemini Earn plan, the cryptocurrency exchange Gemini issued a statement saying that as early as August, the company reached a "principle agreement" with DCG and the Unsecured Creditors Committee (UCC) on DCG's contribution to the Genesis property. Gemini said that the agreement was not fully supported by the wider industry in principle because experts believed that the agreement was not sufficient. Since the matter was "a dead end" from the beginning, creditors are now pressuring DCG to launch a plan to help Genesis repay as much debt as possible. Gemini said that the company is currently under duress by creditors, and DCG has not accepted the revised terms, which will expire on October 6. Genesis is considering submitting a new proposal on October 6, which may allow DCG to increase its contribution, or allow the distribution of existing assets in the Genesis property and allow creditors to recover the remaining unpaid assets through litigation against DCG. (CoinGape) According to previous news, Gemini Trust lawyers opposed the new creditor agreement proposed by DCG. The plan stated that unsecured creditors may receive 70%-90% compensation, and Gemini Earn users may receive 95%-110% compensation. The legal team stated: "In order to divert the attention of Genesis creditors from its seemingly inadequate and unfair proposal, the recovery rate proposed by DCG is false propaganda. According to the current "principle agreement", creditors will not actually receive any actual value close to the proposed recovery rate." In addition, people familiar with the matter revealed that in August 2022, Gemini withdrew approximately US$282 million from Genesis a few months before Genesis froze deposits and eventually filed for bankruptcy. It stated that the funds withdrawn from Genesis were used to establish reserves to ensure that Gemini Earn customers can redeem immediately, and did not flow directly to Gemini founders Winklevoss brothers.