Gemini agrees to put US$100 mln to Earn asset recovery efforts – Crypto News – Crypto News
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Gemini agrees to put US$100 mln to Earn asset recovery efforts – Crypto News

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Cryptocurrency exchange Gemini has agreed to put up US$100 million to Earn users’ asset recovery as part of bankrupt lender Genesis Capital’s in-principle agreement with parent firm Digital Currency Group (DCG) and other creditors. The agreement plans to place all Genesis entities under one holding company, Genesis Global Holdco.

See related articles: Will Genesis meet its maker amid creditors closing in?

Fast facts

  • under the in-principle agreementDCG will exchange its existing US$1.1 billion note due in 2032 for convertible preferred stock and refinance its 2023 term loans worth around half a billion dollars to be made payable to creditors.
  • In Dec. In 2020, Genesis entered into an agreement with Gemini on Gemini Earn, a program that allowed investors to loan their crypto assets to Genesis for up to 8% interest.
  • Genesis halted user withdrawals for Gemini Earn in Nov. 2022 following the collapse of FTX and Singapore-based hedge fund Three Arrows Capital earlier in the year, leading to a public spat between Gemini co-founder Cameron Winklevoss and DCG Chief Executive Officer Barry Silbert.
  • last month, winklevoss alleged in a letter to Silbert that Genesis funds were frozen because DCG did not repay a US$1.675 billion loan to the lender. Winklevoss also alleged that DCG’s lending arm owed Gemini Earn users US$900 million.
  • Genesis filed for Chapter 11 on Jan. 20. Its aggregated liabilities as of the date of the filingswere worth around US$1 billion to US$10 billion to more than 100,000 creditors.

See related articles: Digital Currency Group in spotlight over suspicious fund transfers

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