Gemini

Bitcoin

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 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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<div class="cointelegraph">
 The <a rel="dofollow" title="lenders" href="https://thebittimes.com/tag/lenders.html">lenders</a> of the bankrupt cryptocurrency <a rel="dofollow" title="lender" href="https://thebittimes.com/tag/lender.html">lender</a> Genesis are not satisfied with the latest in-principle settlement <a rel="dofollow" title="agreement" href="https://thebittimes.com/tag/agreement.html">agreement</a> with other parties including the Digital Currency Group (DCG).
 The Ad Hoc Group of Genesis Global Capital (GGC) lenders — represented by lawyers Brian Rosen and Jordan Sazant — on Aug. 29 responded to a public bankruptcy plan update, calling the reached in-principle agreement “wholly insufficient.”
 Posted hours before, the public update said that DCG reached an agreement in principle with Genesis’ unsecured creditors (UCC) and debtors, proposing USD equivalent recoveries of 70%–90%. The update stressed that neither the Ad Hoc Group nor the Gemini exchange supported the deal in principle described in the plan update.
 “Although the mediation has terminated, constructive discussions with the Ad Hoc Group and Gemini regarding the aforementioned agreed-upon deal in principle are ongoing,” the update noted.
 In response, the Ad Hoc Group stressed that it indeed does not support the proposed agreement in principle, calling DCG’s contribution “wholly insufficient to satisfy” the loan amounts. The lenders argued that the debtors and UCC are “unwilling to comply with their fiduciary obligations” to maximize creditor recoveries, arguing that they are instead trying to put the base behind them. The filing added:
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 “The Ad Hoc Group, which includes dozens of creditors for whom these assets are critical, does not have such luxury and cannot support the proposed terms of the plan update which permit DCG to walk away untouched and, in fact, paying less than already committed.”
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 The Genesis lenders also argued that DCG should not be entitled to non-consensual third party releases, which release non-debtor parties from liability to other non-debtor parties without the consent of all potential claimholders.
 Related: Gemini files brief in lawsuit against SEC, requests to keep it simple
 The Ad Hoc Group argued that the debtors and UCC have agreed to “improperly cause the release of third party claims” against DCG and its related parties.
 “Instead of receiving $630 million that matured and should have been paid 3 months ago, DCG will only be paying $275 million now and will pay another $328.8 million in another 2 years,” the <a rel="dofollow" title="lenders" href="https://thebittimes.com/tag/lenders.html">lenders</a> stated, adding:
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 “There is no conceivable scenario where these contributions can be considered to be a substantial contribution of assets sufficient to merit releases from the estate claims, let alone third-party creditor claims.”
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 Genesis is among cryptocurrency lending firms that were affected by the cryptocurrency winter of 2022. The <a rel="dofollow" title="lender" href="https://thebittimes.com/tag/lender.html">lender</a> filed for bankruptcy in January 2023 after suspending withdrawals amid a massive liquidity crisis in mid-November 2022. The firm reportedly owed more than $3.5 billion to its top 50 creditors, including firms like Gemini.
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Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/genesis-lenders-call-dcg-agreement-wholly-insufficient-tbt60941.html">https://thebittimes.com/genesis-lenders-call-dcg-agreement-wholly-insufficient-tbt60941.html</a>

Genesis lenders call DCG agreement ‘wholly insufficient’

TheBitTimes

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