Tags: Digital Currency Group

Gemini Reportedly Withdrew $280 Million From Genesis Before Crypto Lender Filed for Bankruptcy

Lawyers representing Gemini Trust filed a response in bankruptcy court to Digital Currency Group‘s plan claiming to offer unsecured creditors a "70–90 recovery".

In January, Genesis Global Capital announced it would eliminate its crypto spot trading services “voluntarily and for business reasons” without additional details.

According to DCG, Gemini Earn users have the potential to recover anywhere from 95% to 110% of their assets

Gemini Earn Users Could Recover Almost All Assets as Part of New Agreement – Here’s the Latest

DCG suggests a new deal in Genesis bankruptcy, offering unsecured creditors 70–90 baseline recovery; if approved, it would involve the renegotiation of a $630-million loan between Genesis and DCG.

The internal financial dealings of both DCG and its Genesis Global Capital subsidiary are being reviewed by US federal officials. 

Genesis Sues Parent Firm DCG Over $600 Million Loan Repayment

DCG borrowed $500,000 from its subsidiary last year and DCG Investments borrowed over 18,000 BTC and both have allegedly defaulted.

The company, an affiliate of Barry Silbert’s Digital Currency Group, has been providing crypto spot trading since 2013. Its closure is “for business reasons.”

The agreement in-principle reached by DCG and creditors also said that the Ad Hoc Group and Gemini did not support the deal.

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DCG Reaches Preliminary Agreement with Genesis Creditors, Offering Potential 70-90 Recovery

Should the revised plan come to fruition, Genesis creditors are estimated to recover from 70% to 90% in terms of USD equivalents.

The estimated U.S. dollar equivalent recoveries could amount to 70–90 for Genesis creditors, should the amended plan be carried out.

Galaxy Digital had previously reported exposure of around $76.8 million tied to troubled crypto exchange FTX.

This settlement marks a notable decrease from FTX’s initial demand of nearly $4 billion.

Estimates of staffers facing the axe range from 45 (20 people) to 16. A company-wide meeting is reportedly scheduled for Aug. 14.

Gemini’s complaint filed in July alleged DCG and Barry Silbert had made "false, misleading, and incomplete representations and omissions" related to Genesis and the Earn program.

Digital Currency Group (DCG) is reportedly under investigation in New York for financial transactions involving its subsidiary, Genesis Global Capital.

Digital Currency Group Hires Mark Shifke as CFO; Q2 Revenue Surges

The settlement would address and resolve the claims made by the two bankrupt firms against each other while being under court supervision