SNEAK PEAK:
- Gemini will contribute $100 million to Genesis’s bankruptcy recovery.
- The Unsecured Creditor Committee (UCC) is supposed to be chosen this week.
- On November 16, 2022, Earn’s lending partner, Genesis, halted withdrawals.
According to an agreement in principle between Gemini and creditors Genesis Global Capital, LLC (Genesis), Digital Currency Group, Inc. (DCG), and others, there will be a way for Earn users to get their money back. On February 7th Cameron Winklevoss, Gemini`s co-founder made public the terms of this settlement.
1/ Today, @Gemini reached an agreement in principle with Genesis Global Capital, LLC (Genesis), @DCGco, and other creditors on a plan that provides a path for Earn users to recover their assets. This agreement was announced in Bankruptcy Court today.
— Cameron Winklevoss (@cameron) February 6, 2023
For all of Genesis’s creditors, this strategy allegedly represents a crucial next step toward a considerable recovery of assets. Further reflecting Gemini’s ongoing commitment to assisting Earn customers in making a complete recovery, Gemini will provide up to an additional $100 million for Earn users as part of the plan.
In an online post, Gemini declared;
<blockquote>“We have been working around the clock since November 16, 2022, to reach this milestone. We greatly appreciate your support and patience during this time. It has allowed us to maximize our efforts on your behalf.”</blockquote>
According to Genesis, this week is when the Unsecured Creditor Committee (UCC) is supposed to be chosen. Creditor Committee, Genesis, and DCG are still working on a worldwide settlement.
In the same vein, an open letter was sent to DCG’s board of directors demanding that CEO Barry Silbert be replaced. According to Gemini, the Board should fire him immediately so that DCG can begin working with creditors to find a resolution.
Gemini also responded to a Complaint by submitting an Answer to the court. Gemini’s Answer elaborates on the deception perpetrated by Barry Silbert, DCG, and Genesis.
Remember that on November 16, 2022, Earn’s lending partner, Genesis, halted withdrawals and communicated that they would not be able to satisfy redemption requests from Earn users within the SLA timeframe of 5 working days. Earn program withdrawals were then halted by Gemini.