Liquidity Issues:
By the end of the week, the creditor committee anticipates hearing from Genesis and DCG.
According to Gemini co-founder Cameron Winklevoss in a tweet, a creditor committee that includes Gemini has offered Genesis and Digital Currency Group a plan to “create a roadmap for the recovery of assets.”
At the height of the bull market in February 2021, Gemini teamed up with Genesis to launch Gemini Earn, which provided customers with up to 7.4% interest on their cryptocurrency deposits. Given the market turbulence brought on by FTX in mid-November, Genesis stopped allowing withdrawals, locking Gemini Earn funds in the process.
FTX Implosion:
When the FTX implosion occurred, Amanda Cowie, vice president of communications and marketing at DCG, said, “This decision was made in response to the tremendous market dislocation and loss of industry trust created by the FTX implosion.” “This ruling only affects Genesis’s loan operations; it has no bearing on the company’s trading or custody operations. Importantly, this choice does not affect DCGs or our other fully-owned subsidiaries’ business operations.
CoinDesk’s parent company is Digital Currency Group (DCG).
From a total of $1.8 billion owed to the creditors’ group, earlier sources said that Gemini owed $900 million.
On behalf of the Creditor Committee, investment bank Houlihan Lokey has been hired as a financial advisor, and Proskauer Rose serves as counsel.
Read more: Bitvavo claims Digital Currency Group has ‘liquidity problems’
