Gemini

<a href="https://crypto.news/tag/Gemini/" rel="noopener noreferrer nofollow">Gemini </a>Trust has proposed a reorganization plan that could result in creditors of its Gemini Earn program facing up to a 70% reduction in their expected cryptocurrency payouts.
Gemini Trust <a href="https://twitter.com/GeminiTrustCo/status/1735069871929524726" target="_blank" rel="noopener noreferrer nofollow">announced </a>through an X post on Dec. 13 that it had dispatched an email to creditors outlining the proposed payout plan, which has now been put up for a vote.
Under the proposed plan, creditors are set to receive payouts corresponding to their Earn crypto balances as of Jan. 19, 2023, the date when <a href="https://crypto.news/tag/genesis/" rel="noopener noreferrer nofollow">Genesis Global Capital</a>, Gemini’s crypto lending partner, <a href="https://crypto.news/genesis-global-files-for-bankruptcy/" rel="noopener noreferrer nofollow">filed for bankruptcy</a>.
However, the value of major cryptocurrencies like Bitcoin (<a href="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>) and Ether (<a href="https://crypto.news/price/ethereum/" rel="noopener noreferrer nofollow">ETH</a>) was considerably lower at that time compared to their current market prices.
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James Seyffart, an analyst at Bloomberg specializing in exchange-traded funds, labeled the plan “brutal.” He pointed out the stark contrast in cryptocurrency values, noting that at the time of the plan’s basis, Bitcoin and Ether were priced at $20,940 and $1,545, respectively, compared to their current values of $42,794 and $2,276.
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 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. Even at 100% it stings based on current prices. Thats 61%-100% of: Bitcoin $20,940 Ethereum $1,545 <a href="https://t.co/A6u28U3dsi" target="_blank" rel="noopener noreferrer nofollow">https://t.co/A6u28U3dsi</a> <a href="https://t.co/5SKZnlRjr9" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/5SKZnlRjr9</a>— James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1735111306619785535?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">December 14, 2023</a>
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Under the worst-case scenario of a 61% recovery rate, a creditor’s Bitcoin holding in their Gemini Earn account would effectively be valued at just $12,773. This figure represents a mere 30% of Bitcoin’s current market value.
Creditors have been given a deadline of Jan. 10, 2024, at 4 pm Eastern Time to cast their vote on the proposed plan.
Should the plan be accepted, it will then be subject to final approval by the bankruptcy court overseeing the case, with a decision expected on Feb. 14, 2024.
<h2 class="wp-block-heading" id="gemini-users-outcry-against-proposed-payout-plan">Gemini users’ outcry against proposed payout plan</h2>
The significant potential reduction in payouts has provoked a strong backlash from Gemini’s customers.
Many have expressed their displeasure on the platform, with some users <a href="https://twitter.com/AndrewAleid/status/1735086540433351078" target="_blank" rel="noopener noreferrer nofollow">condemning </a>the proposal as a “spit in our faces” and an “absolute disgrace.”
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 After a year this is absolutely insane. You killed our souls. You damaged our hearts and health. We give you crypto coins and want our crypto back. The same amount. DCG forced you to do what ever they want. You couldn’t do anything!!! Unbelievable— ANNA (@AvaAzadpour) <a href="https://twitter.com/AvaAzadpour/status/1735134810882879856?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">December 14, 2023</a>
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Some <a href="https://twitter.com/mrsdrianmalcolm/status/1735088429350654200" target="_blank" rel="noopener noreferrer nofollow">accused </a>Gemini of misleading its customers for more than a year, citing the company’s previous assurances that it would not face <a href="https://crypto.news/gemini-facing-a-class-action-lawsuit-for-concealing-risks-in-its-earn-program/" rel="noopener noreferrer nofollow">counterparty risk</a> from its association with Genesis.
Another X user, BC, <a href="https://twitter.com/cryptoinfo1/status/1735116691997073589" target="_blank" rel="noopener noreferrer nofollow">said </a>everyone should be paid back in full. “Anything less is unacceptable.”
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 So fn sad put the details out, 61-100% for unsecured creditors essentially…but damn gemini you are not doing anything other then playing the game. Put your suggestions out and the possibility of the repercussions, its obvious objections will delay funds but damn your so…— william mcgreevy (@1BlueSky4) <a href="https://twitter.com/1BlueSky4/status/1735171429186843044?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">December 14, 2023</a>
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The Gemini Earn program allowed users to earn interest on their cryptocurrency holdings. Prior to Genesis’s bankruptcy, Gemini had <a href="https://crypto.news/genesis-went-bankrupt-months-after-gemini-reportedly-withdrew-282m-in-crypto/" rel="noopener noreferrer nofollow">withdrawn hundreds of millions of dollars </a>from the firm to support the program.
The cryptocurrency exchange is now seeking to recover<a href="https://crypto.news/gemini-sues-genesis-for-1-6b-gbtc-shares-ownership/" rel="noopener noreferrer nofollow"> $1.6 billion</a> from Genesis for Earn users.
Read more: <a href="https://crypto.news/gemini-accuses-barry-silberts-dcg-of-fraudulent-practices/" rel="noopener noreferrer nofollow"> Gemini: Barry Silbert’s DCG continues to ‘gaslight creditors’ </a>

Gemini Earn creditors face potential 70% cut in crypto payouts

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