![]() “We are encouraged by Genesis’ and its parent company Digital Currency Group’s commitment to doing everything in their power to fulfill their obligations to customers under the Earn program,” they wrote avoiding making any commitments. ![]() Therefore, in consultation with our professional financial advisors and counsel, we have taken the difficult decision to temporarily suspend redemptions and new loan originations in the lending business.”īack to Gemini’s statement, the company assures that things will go back to normal soon enough. Our #1 priority is to serve our clients and preserve their assets. “FTX has created unprecedented market turmoil, resulting in abnormal withdrawal requests which have exceeded our current liquidity. Of course, it all comes down to the disaster Sam Bankman-Fried brought forward. Earlier today, Bitcoinist quoted Genesis explaining their decision and how the situation looks from their end. We are working with the Genesis team to help customers redeem their funds from the Earn program as quickly as possible.” “We are aware that Genesis Global Capital, LLC (Genesis) - the lending partner of the Earn program - has paused withdrawals and will not be able to meet customer redemptions within the service-level agreement (SLA) of 5 business days. The post Digital Currency Group’s recovery plan claims to fully compensate Gemini Earn users appeared first on CryptoSlate.According to the Winklevoss twins’ PR team, the denial of service has to do with their partner Genesis Global Capital’s decisions. ![]() The exchange pursued extensive legal action against DCG, the parent company of the lender, on behalf of its more than 200,000 Earn users, alleging that it knew the lender had been bankrupt since 2022 but failed to inform investors.Įarlier in the month, Gemini rejected a proposed settlement deal between bankrupt crypto platform FTX and Genesis, describing it as a “sweetheart pre-plan deal” designed to benefit only DCG at the detriment of other creditors. ![]() Gemini Earn is an interest-bearing product of the exchange that has been at the center of issues since Genesis filed for bankruptcy. “DCG is providing creditors the opportunity to capture the appreciation of cryptocurrency up to $85,000 for BTC and $8,500 for ETH, representing more than $1.2 billion in additional potential value or a potential up-side appreciation of more than 100%.”ĭCG stated that its estimated recovery for Gemini Earn users is based on the premise that the exchange might not be “contributing a single penny to provide Gemini Earn users a better recovery.” According to the crypto investment firm, if Gemini were to “put its money where its mouth is” by contributing the $100 million it previously promised, then there would be little doubt that its Earn users “would receive more than full recovery.” Per the filing, the proposed agreement would provide Genesis’s “unsecured creditors a 70-90% recovery with a meaningful portion of the recovery in digital currencies,” while Gemini Earn users are estimated to recover approximately 95-110% of their claims.” It has been proposed that Gemini Earn users might recover up to 110% of their claims against the now-bankrupt cryptocurrency lender, Genesis, according to a newly proposed creditor agreement plan filed by Digital Currency Group (DCG) on Sept.
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