Digital Currency Group (DCG) Pays Bankrupt Cryptocurrency Lender for Payment Plan
Introduction
Digital Currency Group (DCG), parent company of Genesis, pays bankrupt cryptocurrency lender for payment plan for its creditors, which include participants in Gemini Trust Co.’s earnings program.
Confirmation of Payback
In a filing on Wednesday, September 12, DCG confirmed to Gemini Earn program investors that they might receive a complete payback equal to or even exceeding their initial investment.
Social Media Announcement
Partial Payment in Bitcoin and Ethereum
Partial payment will be made in Bitcoin (BTC) and Ethereum (ETH).
Recovery for Unsecured Creditors
Deposit also refers to other unsecured creditors of Genesis who will likely recover between 70% and 90% of their investments, which is a notable improvement compared to expected payments to customers of other insolvent crypto services like Voyager Digital and BlockFi Inc.
Efforts to Gain Support
This proposal comes as part of continuous efforts to gain support from program investors and other creditors of Genesis.
Skepticism from Gemini Trust Co.
There was skepticism from Gemini Trust Co., which rejected the proposed repayment plan earlier this month. Gemini indicates a lack of concrete evidence to ensure that Earn users will get between 70% and 90% back of their investments.
Limited Support from Genesis’ Creditors
Moreover, DCG’s proposal received limited support from Genesis’ creditors.
DCG’s Response to Gemini Trust Co.
DCG responded to Gemini Trust Co.’s position by pointing out that the interests of Gemini and its founders, Tyler and Cameron Winklevoss, may not align exactly with those of He wins program participants.
Earning Program and Lawsuit
Earning program is a joint effort between Genesis and Gemini, initially promising customers an interest of around 8% on their digital asset collectibles. However, this initiative is currently entangled in a lawsuit filed by the U.S. Securities and Exchange Commission (SEC), which alleges that it constitutes an unauthorized offering of securities. Genesis and Gemini have strongly refuted these claims.
