March 4, 2024

Gemini exchange offered Genesis and DCG a refund plan for their customers

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Gemini exchange offered Genesis and DCG a refund plan for their customers

A committee of creditors of Genesis and DCG has proposed a plan for the companies to resolve liquidity problems and expects to hear their reasoned response by the end of the week.

Gemini co-founder Cameron WinklevossWinklevoss said that the Committee of Creditors, which includes cryptocurrency exchange Gemini, has sent Genesis and Digital Currency Group (DCG) a “plan to recover assets for Earn users.”

As financial advisor to the CommitteeHoulihan Lokey Investment Bank acted as lenders. The legal purity of the transaction will be monitored by Proskauer Rose. The parties are not disclosing details of the proposed plan, but say the committee expects a response this week.

In February 2021, Gemini entered intopartnered with Genesis to launch its Gemini Earn program. This program offered 7.4% per annum on customer deposits. But last month, crypto exchange Gemini suspended withdrawals, freezing Gemini Earn funds.

Let us recall that the total amount of debt of troubled companies to Gemini is estimated at $900 million out of a total debt of $1.8 billion due to a group of creditors.