![]() Gemini Earn customers are behind institutional creditors, secured creditors, and priority claims in carving out the company’s remaining assets. In a further blow, Genesis classified Gemini as a “Class IV” unsecured creditor. However, the $284.3 million may be all that is due. This could further delay the bankruptcy case, meaning Gemini Earn customers may be set for a long wait before recovering their funds. ![]() However, Gemini will likely challenge the claim, resulting in court action. ![]() The dispute requires the judge overseeing the bankruptcy to make a call on whether the agreement stands. Given the “behind-the-scenes” agreement between the two parties, Genesis now claims the $769 million balance owed to Gemini Earn customers has been paid with the GBTC share sale. However, with a balance owed of $769 million, the shortfall amounts to $484.7 million. 16, 2022, Genesis froze withdrawals from its platform and informed Gemini that it had sold the collateralized GBTC shares at $9.20 per share, netting $284.3 million. 11, 2022, following weeks of insolvency rumors beforehand. Gemini Earn customers will likely receive 100 of their assets despite the Digital Currency Group owing Genesis 1.7 billion. Incidentally, FTX filed for bankruptcy on Nov. ![]() This arrangement was later extended on Nov. 15, 2022, Genesis pledged 30.9 million GBTC shares as collateral for Gemini Earn’s customers’ tokens. In an unexpected development, Genesis now claims it has fulfilled its obligations to Gemini by paying out the proceeds of a private sale of Grayscale Bitcoin Trust (GBTC) shares that collateralized the debt. The bankruptcy filing showed that Genesis owed its creditors $3.5 billion the largest is Gemini, with a $769 million balance due. Digital Currency Group, parent company of bankrupt crypto lender Genesis Global, said users of Gemini Trust’s Earn program can expect 95 to 110 recovery of their claims against Genesis under a. 19, triggering panic among its creditors. Customers’ tokens were then loaned to counterparties, in this case, Genesis, who generate yield by trading and investing.Īfter months of insolvency rumors, Genesis filed for Chapter 11 bankruptcy on Jan. Crypto broker Genesis and its parent company Digital Currency Group (DCG) owe customers of the Winklevoss twins crypto exchange Gemini 900 million, the Financial Times reported on Saturday. Gemini Earn paid rewards to customers who lent cryptocurrency to the program. 11 in the highest-profile crypto blowup to date, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a rescue deal.Gemini Earn customers face a potential $485 million shortfall in their bid to be made whole following the Genesis bankruptcy. Crypto exchange Gemini will contribute 100 million in cash to a recovery plan for the bankrupt crypto lender Genesis Global Capital and its parent company, Digital Currency Group, the lender’s lawyers said in a court hearing Monday. Genesis Global Capital suspended customer redemptions in its lending business last month, citing the sudden failure of crypto exchange FTX.Ĭrypto trading platform FTX filed for bankruptcy protection in the United States on Nov. Investment bank Moelis & Company has been hired by Genesis to explore options including a potential bankruptcy, the New York Times reported last month. The firm runs a crypto lending product in partnership with Genesis. Gemini has now formed a creditors' committee to recoup the funds from Genesis and its parent DCG. "Venture capital company Digital Currency Group, which owns Genesis Trading and cryptocurrency asset manager Grayscale, owes $575 million to Genesis' crypto lending arm," Digital Currency Chief Executive Barry Silbert told shareholders on October.
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