Gemini, a prominent cryptocurrency exchange, continues to voice its strong opposition to Digital Currency Group’s (DCG) bankruptcy plan, asserting that it is an attempt to shortchange Genesis creditors and entice them into an unfavorable agreement. In a recent court filing, Gemini criticized DCG’s tactics, referring to them as “contrived, misleading, and inaccurate assertions” aimed at confusing the creditors of the Genesis estate.
Gemini’s primary contention revolves around DCG’s alleged intention to pay Genesis creditors less than they are rightfully owed. The Exchange believes DCG’s plan is designed to underpay creditors and benefit itself disproportionally. Gemini’s filing emphasized, “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.”
Gemini is resolute in its commitment to opposing DCG’s bankruptcy plan, emphasizing that its goal is to maximize the recovery of its customers’ lost assets. The filing states, “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.”
Gemini’s criticism of DCG has been consistent recently, particularly in response to the ongoing dispute over the bankruptcy plan. On August 31, Gemini raised concerns that the plan lacked clarity and essential information required by creditors. This objection stemmed from the agreement between DCG debtors and Genesis creditors lacking critical details regarding payment to creditors.
According to a recent court filing, creditors of Genesis have yet to receive payment for loans that matured in May, with the outstanding loans amounting to approximately $630 million. This unresolved payment issue adds to the tension between Gemini and DCG.
The rift between the two entities escalated further when, on July 7, Gemini initiated legal action against DCG and its founder, Barry Silbert. Gemini’s CEO, Cameron Winklevoss, alleged deceptive conduct on the part of Silbert. Specifically, Winklevoss claimed that Silbert had approached Gemini to persuade them to continue their Earn program, despite being aware of Genesis’ significant insolvency, when Gemini had decided to discontinue the program in October 2022.
As the dispute between Gemini and DCG rages on, the cryptocurrency community watches closely to see how this legal battle and the bankruptcy plan will ultimately impact the creditors of the Genesis estate and the broader cryptocurrency industry.