Gemini Claims Genesis Parent DCG Defaulted on $630 Million Payment

The post Gemini Claims Genesis Parent DCG Defaulted on $630 Million Payment appeared first on Coinpedia Fintech News

According to a recent update shared by crypto exchange Gemini, Digital Currency Group (DCG) reportedly missed a $630 million payment that was due to its subsidiary, Genesis Global Capital, earlier this month. 

Gemini, which is a creditor to DCG’s Genesis, stated that it is actively engaged in discussions with Genesis and other creditor groups to explore options for forbearance in order to prevent a potential default.

Gemini CEO Cameron Winklevoss has expressed his intention to take legal action against DCG CEO Barry Silbert and DCG itself regarding the repayment of a $900 million loan. This follows Genesis, a DCG subsidiary, filing for Chapter 11 bankruptcy amidst allegations of commingled funds and ongoing disputes surrounding loan repayments. 

In addition, both Gemini and DCG have been accused by the U.S. Securities and Exchange Commission (SEC) of selling unregistered securities through their Earn program.

Gemini Proposes an Amended Reorganization Plan if an Agreement Is Not Reached

While discussions between Gemini and DCG are ongoing, Gemini has stated that if an agreement is not reached, they, along with other parties involved, are proposing an amended reorganization plan with Genesis that does not require DCG’s approval. This update was provided by Gemini on its website.

As part of their efforts to address the Genesis and DCG situations, Gemini has introduced a plan called the “Gemini Master Claim.” This plan involves the exchange seeking the recovery of over $1.1 billion worth of digital assets from Genesis. The objective of pursuing this avenue is for Gemini to reclaim the significant amount of digital assets it believes it is owed by Genesis.

According to Gemini, Genesis has reportedly declined to return funds to approximately 232,000 users who were active participants in the Gemini Earn program as of January 19, 2023. These users are currently encountering challenges in retrieving their funds from Genesis.