Gemini

Future

Bitcoin

James

<p>The post <a href="https://coinpedia.org/news/gemini-earns-proposed-bitcoin-repayment-plan-is-brutal/">Gemini Earn’s Proposed Bitcoin Repayment Plan is ‘Brutal’</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>The unfolding drama in the cryptocurrency world sees Gemini Earn creditors in a state of turmoil. These individuals are up in arms against a reorganization plan proposed by Gemini Trust, which suggests a significant cut in their Bitcoin payouts. The contentious plan, revealed in a detailed email from Gemini Trust on December 13 and currently up for a vote, offers a grim recovery scenario for the creditors.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Earn Update: Solicitation of the Genesis Plan of Reorganization (Plan) began today. Earn users were sent an email with specific instructions on how to vote on the Plan and a link to the Genesis Solicitation Package, including the Disclosure Statement. <br><br>The voting deadline is…</p>— GeminiTrustCo (@GeminiTrustCo) <a href="https://twitter.com/GeminiTrustCo/status/1735069871929524726?ref_src=twsrc%5Etfw">December 13, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p>At the heart of the dispute is the proposal’s terms, which state that creditors would receive payouts based on their Earn crypto balances as of January 19, 2023. This date is notable when Genesis Global Capital, Gemini’s cryptocurrency lending partner, filed for bankruptcy. According to Bloomberg ETF analyst James Seyffart, the proposal is “brutal” considering the disparity between cryptocurrency values then and now. </p> 
<p>For instance, Bitcoin and Ether were valued at $20,940 and $1,545, respectively, on January 19. However, their prices have surged since then, reaching $42,750 and $2,250, respectively. In a worst-case scenario, creditors could receive only about 30% of the current market value of their assets.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">This could be brutal. Granted seems to be worst case scenario but Gemini Earn users could be getting potentially just 61% of the value of their crypto from Jan 19, 2023. WOOF. <br><br>Even at 100% it stings based on current prices. Thats 61%-100% of:<br><br>Bitcoin $20,940<br>Ethereum $1,545 <a href="https://t.co/A6u28U3dsi">https://t.co/A6u28U3dsi</a> <a href="https://t.co/5SKZnlRjr9">pic.twitter.com/5SKZnlRjr9</a></p>— James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1735111306619785535?ref_src=twsrc%5Etfw">December 14, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<h2 class="wp-block-heading" id="h-public-backlash-on-social-media"><strong>Public Backlash on Social Media</strong></h2> 
<p>Gemini’s public post on X (formerly Twitter) about this proposal was met with strong opposition. Users like <a href="https://twitter.com/AndrewAleid/status/1735086540433351078">Andrew Aleid</a> and <a href="https://twitter.com/mrsdrianmalcolm/status/1735088642404614250">Leslie</a> voiced their dissatisfaction, with Leslie accusing Gemini Trust of deceit and demanding full repayment. Their sentiments reflect a broader dissatisfaction among the creditor community.</p> 
<p>Gemini Earn was a unique program allowing users to earn interest on their cryptocurrency holdings. Before Genesis Global Capital’s bankruptcy, Gemini had withdrawn substantial funds from Genesis to support this program. The current plan aims to recover around $1.6 billion from Genesis for Earn users.</p> 
<h2 class="wp-block-heading" id="h-the-voting-process-and-future-outlook"><strong>The Voting Process and Future Outlook</strong></h2> 
<p>Creditors have until January 10, 2024, to cast their votes on this plan. If accepted, the bankruptcy court will have the final say on February 14, 2024. The plan’s acceptance or rejection will significantly impact the creditors, determining their recovery percentage and the timing of any potential distributions.</p> 
<p>To assist creditors in making an informed decision, Gemini Trust has released a comprehensive set of FAQs. These include insights into the plan’s implications, the voting process, and the potential outcomes of the bankruptcy proceedings. The FAQs emphasize that the proposal’s acceptance could result in a range of recovery for creditors, estimated between 61% and 100% of the value of their Earn balance as of January 19, 2023.</p> 
<p>As the February 14, 2024, court date approaches, all eyes will be on the outcome of this vote and its implications for the future of cryptocurrency lending and investment.</p>

Gemini Earn’s Proposed Bitcoin Repayment Plan is ‘Brutal’

Table of Contents

CoinPedia News

Other articles published on Dec 14, 2023

Bad Timing For Sam Bankman-Fried? Here’s How Much FTX Assets Would Be Worth Now

Breaking: On-Chain Data Suggests Popular Decentralized Applications are Compromised – Here’s the ...

Siacoin (SIA): Cloud Storage Platform For Traders

Infinite Reality, Global Leader Powering AI-Virtual Immersive Experiences Announces Strategic Par...

Approval Phishing Scams See “Explosive Growth,” Nearly $375 Million Stolen This Year Alone

The Surging Path of INJ Coin: What’s the Next Price Target?

Join our free newsletter for daily crypto updates!