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- Gemini criticizes Digital Currency Group’s new recovery plan as misleading and insufficient.
- The proposed deal by DCG promises a 70-90% recovery to creditors, partly in digital currencies.
- Lawyers representing Gemini claim that DCG aims to escape full responsibility and offer less than what they owe.
Amidst ongoing bankruptcy proceedings, a new deal proposed by DCG faces fierce criticism from crypto giant, Gemini. The plan aims to settle with creditors, but is it enough?
Genesis Bankruptcy Proceedings Unveil a Controversial Recovery Plan
The Digital Currency Group (DCG), the parent company of Genesis, has unveiled a controversial proposal as a part of its ongoing bankruptcy proceedings. The plan outlines a recovery framework for creditors, aiming to offer “all unsecured creditors a 70-90% recovery with a significant part of the recovery in digital currencies.”
Gemini’s Strong Opposition to DCG’s Offer
Gemini has been swift and harsh in its criticism. In a recent statement, they accused DCG of providing “contrived, misleading, and inaccurate assertions” with this new proposal. They interpret the move as an “attempt to gaslight creditors of the Genesis estate generally, and the Gemini Lenders specifically.” Their primary contention is that DCG is trying to bait Gemini lenders into settling for a deal that doesn’t fully compensate them for their losses.
Background: The Gemini-DCG Dispute
The roots of the dispute date back to earlier this year when Genesis’ lending unit filed for bankruptcy. The relationship between Gemini and DCG soured even further when Genesis froze withdrawals from the Gemini Earn retail lending program. This move was sharply criticized by Gemini’s co-founders, Tyler and Cameron Winklevoss, who pointed fingers at DCG CEO Barry Silbert and Genesis for allegedly misleading investors. The program in question, Gemini Earn, was designed to let users lend their digital assets to Genesis Global under a tri-party agreement.
What’s Next? The Proposed DCG Plan Detailed
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The recovery plan introduced by DCG seeks to renegotiate the terms of a staggering $630 million loan between Genesis and DCG. If the deal goes through, part of this loan would be paid back in cash shortly after closing, with the remainder being structured into a two-year note. However, for this plan to come into effect, it will need approval from the creditors via a vote.
Conclusion
The feud between Gemini and DCG continues to make headlines in the crypto space. As bankruptcy proceedings go on, the new recovery proposal by DCG adds another layer to their already complex relationship. While the proposed deal may seem like a step forward, Gemini’s vehement opposition suggests that a resolution is still far from sight. Only time will tell if DCG’s plan manages to win over the majority of its creditors or if more battles lie ahead.
