Breaking: DCG’s New Plan Offers Gemini Earn Users Full Crypto Recovery
Digital Currency Group (DCG) has broken new ground in the ongoing Genesis Global bankruptcy saga. According to a recent filing, DCG proposes a remuneration plan that could end months of uncertainty for over 230,000 retail creditors. Significantly, these creditors, who used Gemini’s Earn program, might recover 95-110% of their claims without any financial contribution from Gemini.
DCG’s Promise of a Recovery
The proposed plan offers unsecured creditors a 70-90% baseline recovery. Additionally, the plan indicates that the recovery for Gemini Earn users would be significantly higher. Consequently, if approved, this plan would renegotiate the $630 million loan between Genesis and DCG.
Moreover, DCG revealed that the repayment for some of these creditors might be “in-kind,” meaning in digital currencies rather than U.S. dollars. This positions creditors to capture the potential upside of cryptocurrency appreciation, another reason DCG hopes will drive creditor commitment.
Controversy Surrounding Gemini’s Financial Role
In the melee of accusations and public disputes between Gemini co-founders Tyler and Cameron Winklevoss and DCG founder Barry Silbert, this new proposal comes as a breath of fresh air.
Moreover, it offers a tangible resolution to make beleaguered Gemini Earn customers nearly whole. Besides, the filing sharply criticized Gemini for not financially contributing to their customers’ recoveries, noting that the exchange hasn’t put “its money where its mouth is.”
The terms of the deal stipulate partial cash repayments shortly after closing, with the remainder structured into a two-year note. Hence, DCG’s new proposal has positioned itself as a robust framework that could mean a full recovery for the vast majority of claimants without costing Gemini a dime.
With the plan pending creditor approval, DCG has expressed considerable pride in their proposal. They believe those with rightful claims, especially Gemini Earn users, should have the opportunity to vote on the deal.
In a volatile industry where the chances of asset recovery can be bleak, DCG’s latest move is a remarkable outcome. However, the final verdict rests with the creditors, who will vote later this year to determine if this proposal becomes a financial lifeline for thousands.
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