On the 19th of May, Gemini posted an update directed at the firm’s Earn customers explaining the “process of finding a resolution for all Earn users to redeem their assets.” Gemini halted the Earn program after the implosion of FTX negatively impacted Genesis Global Capital’s lending subsidiary.
Following this matter, Cameron Winklevoss, Gemini’s co-founder, tweeted an open letter to Digital Currency Group chief exec Barry Silbert in an attempt to get his attention. Following that event, reports of Digital Currency Group allegedly not making on-time payments to its creditors began to surface.
Gemini had the following to say:
“DCG, the parent company of Genesis Global Capital, LLC (Genesis) did not pay the approximately $630 million that came due last week. Genesis, the unsecured creditors’ committee (UCC), the ad hoc group of creditors (AHG), and Gemini are considering whether to provide a forbearance to DCG to avoid a DCG default. Consideration will be based in part on whether the parties believe DCG will engage in good faith negotiations on a consensual deal.”
Genesis Capital declared bankruptcy at the beginning of 2023, and repayment negotiations are currently being carried out via the standard bankruptcy protection procedures.
Gemini made it abundantly clear that if an agreement is not reached, the company along with other participating parties will work with Genesis directly to come up with terms for a modified reorganization strategy that could be executed without the approval of Digital Currency Group.
Gemini further revealed in its update that Genesis had filed a court motion to add time to propose a plan. According to the update:
“This would be a plan that would have Gemini’s input if not outright support.”