- A creditor committee has offered Genesis a roadmap to recovering assets.
- Customers of Gemini crypto exchange have over $1 billion frozen with Genesis.
- Previously, Gemini partnered with Genesis to offer 7.4% interest on crypto deposits.
According to the co-founder of Gemini crypto exchange, Cameron Winklevoss, a creditor committee, that includes Gemini, has offered Genesis Global Capital and Digital Currency Group (DCG) a plan to recover its assets.
Winklevoss noted in a tweet early today that the strategy would help the embattled firm resolve its liquidity crisis for all Earn users to redeem their assets.
Notably, Gemini teamed up with Genesis at the height of the bull market last year to launch Gemini Earn, which provided customers with up to 7.4% interest on their crypto deposits. Given the market turbulence brought by FTX in November, Genesis stopped allowing withdrawals, locking Gemini Earn money in the process.
Amanda Cowie, vice president of communications and marketing at DCG, noted that the suspension only affected Genesis’ lending business but not its custody or trading arm.
Previous reports put the total sum owing to Gemini at $900 million, out of a total of $1.8 billion payable to the creditors’ group. The Creditor Committee has recruited investment bank Houlihan Lokey, as a financial consultant, with law firm Proskauer Rose acting as counsel.
In related news, customers of the defunct crypto lender Celsius are still awaiting the outcome of the bankruptcy proceeding the company filed seven months ago. Recently, the committee representing the interests of unsecured creditors sought permission from a US court to extend the bid dates to allow for more negotiations with the bidders.
The committee decided that adjourning the original deadlines was the best way to achieve the desired goal after receiving multiple proposals for transactions involving its retail platform and mining business.