Gemini

Cryptocurrency

United

Cryptocurrency exchange Gemini has revealed that Genesis parent entity DCG has missed a $630 million loan payment that was due last week.&nbsp;
The exchange added that it is working with DCG, Genesis, and other creditors to provide forbearance and help DCG avoid a default.&nbsp;
Another Payment Missed&nbsp;
The payment is in relation to a loan made by Gemini to the now-bankrupt lender Genesis, a subsidiary of DCG. Gemini had warned earlier in the month that if DCG is unable to make the required loan repayment or restructure its debt, then the digital assets conglomerate would be at risk of defaulting on its obligations. At the beginning of the year, Cameron Winklevoss, Gemini CEO, had threatened to sue Barry Silbert and DCG relating to a $900 million loan. This was after Genesis filed for Chapter 11 bankruptcy amidst a wave of allegations and ongoing disputes about loan repayments. The United States Securities and Exchange Commission had also accused the firms of selling unregistered securities through their Earn Program.&nbsp;
Gemini shared an update on the company&rsquo;s website, stating that it was exploring the possibility of granting forbearance to DCG in an effort to avoid a default. A spokesperson for Genesis stated,&nbsp;

&ldquo;Genesis and its creditors, represented by the Official Committee of Unsecured Creditors, the Ad Hoc Group of Genesis Lenders, and Gemini Trust, are working collaboratively to address Digital Currency Group&rsquo;s nonpayment of approximately $627 million in dollars and BTC that was due last week during the ongoing mediation period. Among other things, as part of the ongoing mediation process, the parties are discussing potential terms of forbearance, a standalone chapter 11 plan for Genesis, and other options to recover assets and maximize value to stakeholders.&rdquo;

An Amended Reorganization Plan&nbsp;
If a scenario arises where a resolution cannot be reached, Gemini has proposed presenting an amended reorganization plan. This plan would be proposed independently and would not require the involvement or consent of DCG.&nbsp;

&ldquo;DCG continues to be engaged with the various stakeholders in the Genesis Capital restructuring process pursuant to the 30-day mediation period entered into by all parties on the 1st of May.&rdquo;

Gemini added in its update,&nbsp;

&ldquo;Consideration will be based in part on whether the parties believe DCG will engage in good faith negotiations on a consensual deal.&rdquo;

Cameron Winklevoss has repeatedly accused DCG CEO Silbert of acting in bad faith and using stall tactics.&nbsp;
Gemini Places Extension Request&nbsp;
Gemini&rsquo;s Legal representatives also requested an extension of the deadline to file a Chapter 11 reorganization plan. The request, filed in the Bankruptcy Court of the Southern District of New York, seeks a 100-day extension to the original deadline. The reorganization plan would have &ldquo;Gemini&rsquo;s input if not outright support.&rdquo; The extension request could give all parties involved additional time to navigate through the complex bankruptcy proceedings and facilitate ongoing efforts by the debtors to achieve a value-maximizing restructuring plan without hindering any competing plan.&nbsp;
If the request is granted, Genesis would have time until the 27th of August 2023 to file the restructuring plan, and Genesis would have until the 26th of October to accept it. Gemini also added that it was preparing the &ldquo;Gemini Master Claim.&rdquo; The Master Claim would go after the over $1.1 billion Gemini claims it is owed by Genesis. According to the exchange, Genesis has reportedly refused to return funds to over 232,000 users who were part of Gemini&rsquo;s Earn program and had active loans as of the 19th of January, 2023. Gemini had to freeze its Earn program after Genesis froze withdrawals in November 2022.&nbsp;
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Gemini Reveals Genesis Parent DCG Has Missed A $630M Loan Payment

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