Gemini Earn – the Winklevoss-owned crypto exchange’s digital asset lending arm – announced on Sunday that it had agreed with Barry Silbert’s Digital Currency Group (DCG) on a mediation process to bring their bankruptcy dispute to a close. The company said that it expects an order from Bankruptcy Judge Lane directing the mediation to arrive as early as Monday. Gemini’s Final Resolution Per the company’s latest update, the plan arranges for two meetings to take place before Monday, May 8. The date is important since DCG owes the bankruptcy estate 0 million by May 9 to 11. According to Gemini, should DCG fail to repay its debt by that time, the crypto industry giant risks “defaulting on its obligations.” “The mediation will be narrowly focused on DCG’s economic
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Gemini Earn – the Winklevoss-owned crypto exchange’s digital asset lending arm – announced on Sunday that it had agreed with Barry Silbert’s Digital Currency Group (DCG) on a mediation process to bring their bankruptcy dispute to a close.
The company said that it expects an order from Bankruptcy Judge Lane directing the mediation to arrive as early as Monday.
Gemini’s Final Resolution
Per the company’s latest update, the plan arranges for two meetings to take place before Monday, May 8. The date is important since DCG owes the bankruptcy estate $630 million by May 9 to 11.
According to Gemini, should DCG fail to repay its debt by that time, the crypto industry giant risks “defaulting on its obligations.”
“The mediation will be narrowly focused on DCG’s economic contribution to the bankruptcy estate for the benefit of all creditors, including Earn users, and is designed to bring resolution to the Genesis bankruptcy plan,” stated Gemini.
DCG is the parent company of Genesis Trading – the institutional crypto-lending firm that filed for bankruptcy after suffering immense losses to both Three Arrows Capital in June, and FTX in November. Gemini was forced to halt withdrawals from its Earn product in response since Gemini used Genesis as its trading partner for earning yield for its retail clients.
While the agreement is scheduled for 30 days, Gemini said both parties are expected to “work expeditiously towards agreement in the immediate window.”
“We have also expressed our frustration on the record before Judge Lane on the pace of progress among the parties and the need for urgency,” the company continued. “The next status conference with the Court will be on May 4th.”
Recovering From the Crash
Last week, DCG alleged that a group of Genesis creditors had walked away from a previous restructuring deal formed two months prior, designed to “maximize value” for all of Genesis’s stakeholders.
The terms would have DCG exchange its $1.1 billion note due to Genesis in 2022 with convertible preferred stock issued by DCG. Cameron Winklevoss blasted the issuance of the prior note in January as grossly misvalued and later threatened to sue Silbert.
The Winklevoss twins agreed in April to commit $100 million of their own money into Gemini, which has suffered cash flow problems since its debacle with Genesis began.