Gemini

The lawsuit, filed as part of Genesis' bankruptcy proceedings, seeks to establish its claim over the GBTC shares that were pledged as collateral. The exchange argues that acquiring control of these shares would fully secure and satisfy the claims of all its Earn customers, who faced frozen funds when Genesis halted withdrawals last year. 
"Genesis has repeatedly taken actions to harm Earn users and to hinder and delay Earn users’ recovery of their digital assets," the lawsuit alleged. "It is time to resolve these issues so that Genesis may move forward with a reasonable plan of reorganization and Gemini may distribute the proceeds of the collateral to Earn users," the filing reads. 
The suit comes amidst broader challenges faced by both Gemini and Genesis. Additionally, the legal action by Gemini follows a separate lawsuit filed a week earlier by New York Attorney General Letitia James. This lawsuit accused Gemini, Genesis, and DCG (Digital Currency Group) of defrauding investors of over $1 billion. 
Despite these turbulent circumstances, Genesis and DCG had previously announced in September that they intended to make Gemini Earn customers "nearly whole" under a proposed compensation deal. However, the resolution of this dispute and the fate of the contested GBTC shares remain uncertain, pending the outcome of the bankruptcy-court proceedings. 
Genesis and its parent company, Digital Currency Group (DCG), previously announced that Gemini Earn users are estimated to recover approximately 95-110% of their claims. Additionally,&nbsp;<a href="https://financefeeds.com/barry-silbert-says-geminis-earn-lent-genesis-not-dcg/">DCG’s bankruptcy plan</a>&nbsp;outlines a potential path for unsecured creditors who could receive between 70% to 90% of their owed amount in USD, and in-kind recoveries could range from 65% to 90% based on the asset allocation. 
However, Gemini claims that the plan lacks clarity and crucial information, which raises concerns. It called the deal “misleading at best” in a court filing. 
A group of ad hoc creditors called the Fair Deal Group also filed an objection to the proposed plan, citing similar reasons. They expressed concerns that the proposed agreement fails to secure all the debts&nbsp;<a href="https://financefeeds.com/genesis-granted-plan-extension-as-judge-excludes-ftx/">Genesis owes</a>&nbsp;and that the troubled firm is not showing any evidence to formulate a viable plan. 
The situation has worsened recently, as creditors have not received payments for loans that were supposed to be paid after reaching maturity in May. These unpaid loans have a combined value of approximately $630 million. 
Digital Currency Group (DCG) owes over $1.65 billion to Genesis, while the latter owes around $1.2 billion to Gemini. Overall, Genesis owes more than $3 billion to its top 50 creditors. DCG has proposed a repayment plan that would see the owed money paid across two tranches over seven years, with the aim of eventually making Gemini Earn users “nearly whole,” according to DCG’s lawyers.

Gemini hunts for Genesis’ GBTC shares to repay all Earn claims

FinanceFeeds

2023년 10월 30일에 게재된 다른 기사

Popular Analyst Warns Correction In Shiba Inu, Dogecoin, Cardano And Injective

Polkadot Surges As Staking Dashboard Adds Powerful Features

What is Real Smurf Cat and How to Buy SMURFCAT?

Ripple XRP Price Prediction: November 2023

XRP Faces a Big Obstacle After Whales Begin Sell-Offs

Sam Bankman-Fried Denies Wrongdoing But Acknowledges His Mistakes

무료 뉴스레터에 가입하여 매일 최신 암호화폐 소식을 받아보세요!