Crypto News – Digital Currency Group (DCG) is allegedly attempting to trick its creditors into accepting a terrible deal, according to cryptocurrency exchange Gemini, which has continued to criticize DCG’s bankruptcy strategy.
The Dispute Between Gemini and DCG Continues: Gemini Speaks Harshly on DCG’s Bankruptcy Strategy – 2023
Gemini claims that DCG’s bankruptcy strategy is an attempt to underpay its Genesis creditors through a disadvantageous deal in a recent court filing.
DCG continues its campaign of contrived, misleading, and inaccurate assertions in an attempt to gaslight creditors of the Genesis estate generally,
the filing
Gemini Launches a War Against Bad Strategy
Gemini promises to keep challenging DCG’s insolvency proposal. It asserts that by doing this, the recovery of its customers’ lost assets will be maximized.
Gemini will continue fighting against DCG’s ‘starve them out’ approach to ensure that DCG pays a just and adequate amount. The Gemini Lenders deserve more value from DCG, and there is more to get.
the filing
Gemini Has Repeatedly Said It Strongly Disagrees With the Bankruptcy Strategy
Gemini has recently been outspoken about how it disagrees with DCG’s proposed bankruptcy plan. According to the crypto exchange, DCG continues to deny that it was a major factor in the Genesis crash. Additionally, it claims that DCG rejects all accountability. Gemini complained that the bankruptcy plan was unclear and lacking important details for its creditors on August 31.
The DCG Statement must be seen for what it is: DCG’s attempt to bait the Gemini Lenders into accepting a deal that would allow DCG to pay far less than it owes.
the filing
Gemini Objects as the Deal Doesn’t Contain Enough Details
Gemini objected because the deal was vague about how creditors would be compensated and left out key information. An up-to-date court filing claims that Genesis’ lenders have not yet paid them for debts that became due in May. It states that the estimated $630 million total value of these outstanding debts.
Gemini filed a lawsuit on July 7 against DCG and Barry Silbert, the company’s founder. The exchange was the target of misleading behavior, according to allegations made in the lawsuit by Gemini’s CEO, Cameron Winklevoss. When Gemini decided to end its Earn program in October 2022, Winklevoss explained that Silbert approached Gemini and pleaded with them to maintain the program even though he was aware of Genesis’ serious financial difficulties.
DCG Plans to Pay Off Debt Over 7 Years
DCG owes the troubled cryptocurrency lender Genesis more than $1.65 billion, and Genesis owes Gemini almost $1.2 billion. In total, Genesis owes its top 50 debtors more than $3 billion. According to DCG’s attorneys, this sum would be paid over the course of two tranches and seven years under the suggested repayment plan.
DCG touts proposed recovery rates that are a total mirage – misleading at best and deceptive at worst. Make no mistake: Gemini Lenders will not actually receive anything close in real value terms to the proposed recovery rates under the current ‘agreement in principle.’
Gemini’s lawyers
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