- Gemini has said that its parent company DCG has failed to pay $630 million, which was due last week.
- The exchange stated that it is working with Genesis, DCG, and creditors to offer forbearance to DCG in order to avoid a default.
Gemini has accused its parent company Digital Currency Group (DCG) of failing to pay $630 million that was due last week. The former stated that it was working with Genesis, DCG, and creditors to offer forbearance to DCG in order to avoid a default.
As Genesis, a DCG entity, filed for Chapter 11 bankruptcy amid claims of mixed funds and ongoing loan repayment issues, Gemini CEO Cameron Winklevoss has threatened to sue DCG CEO Barry Silbert and DCG over the payback of a $900 million debt.
The Securities and Exchange Commission (SEC) has accused both firms of selling unregistered securities through their Earn program.
Gemini and Genesis fight over Earn program
Gemini and Genesis have been entangled in a high-profile legal battle over the Gemini Earn program.
Genesis, the exchange’s principal revenue partner, unexpectedly banned withdrawals in November 2022. In retaliation, the Winklevoss twins vowed to sue Genesis’ parent firm, DCG, as well as its founder, Barry Silbert.
To further complicate matters, Gemini demanded that Genesis prepare a repayment plan for the $900 million debt that Gemini had provided to Genesis Global. The public confrontation between the two parties continues. The exchange led by the Winklevoss twins addresses the next steps in its latest update.
Gemini has updated on its platform that if the deal doesn’t materialize, Gemini and other parties are proposing a modified reorganization plan with Genesis that does not require DCG’s approval.
Gemini’s statement read:
“Consideration will be based in part on whether the parties believe DCG will engage in good faith negotiations on a consensual deal.”
If no agreement can be achieved, the exchange is contemplating submitting an “amended plan of reorganization.” This might happen without the permission or cooperation of the DCG. The alternative plan would be proposed as a possible line of action to resolve the existing issue.
