May 5, 2024
Business

Gemini commits $100 million to Genesis debt restructuring

Article Reading Time:
1 min.

Gemini commits $100 million to Genesis debt restructuring

Биржа Gemini выделит $100 млн на plan to turn around and restructure its bankrupt partner Genesis under an agreement announced in Manhattan bankruptcy court.

Genesis, Gemini, Digital Currency Group (DCG)and Genesis' lenders have entered into an agreement under which $100 million in funds will be reserved on behalf of Gemini for the benefit of 340,000 Earn income program clients. In this way, Gemini intends to demonstrate its commitment to returning funds to affected users.

The joint recovery plan is largelydegree is based on the refinancing of Genesis loans provided by DCG. In addition to the refinancing, DCG will provide Genesis lenders with all shares of a Genesis subsidiary, a two-tranche credit facility and convertible preferred shares. 

According to Gemini Legal Services, the totalThe amount of DCG’s contribution to the reorganization program of the bankrupt crypto lender Genesis amounted to about $500 million. In addition to the refinancing of Genesis loans, liquidation measures involve the sale of the bankrupt company.

Gemini previously announced the termination of its loan agreement with Genesis Global Capital (GGC) and the closure of the Earn program, accusing its management of deceiving users.

Read this:

Gemini announces termination of agreement with Genesis Global Capital and closure of Earn program Gemini exchange offered Genesis and DCG a refund plan for their customers Media: Genesis crypto lender owes about $1 billion to Gemini exchange clients SEC accuses Gemini and Genesis of unregistered sale of securities Default thumbnailGemini Forms Creditor Committee With Houlihan Lokey To Address Genesis Liquidity Problems Gemini: "SEC allegations are counterproductive and unconvincing"