Connect with us

News

Can Gemini’s Creditor Committee resolve the Genesis, DCG liquidity crisis

Published

on

Source: Unsplash


  • The Gemini creditor committee presented a plan to Genesis and DCG to resolve their liquidity issues 
  • Genesis and DCG owe $900 million to Gemini

Gemini, as of 21 December, provided an update to its users regarding the ongoing liquidity issues at fellow crypto exchange Genesis. Gemini’s co-founder Cameron Winklevoss posted a tweet informing his followers of an ad hoc committee.

The ad hoc creditor committee, which includes Gemini, put forward a plan to resolve the liquidity issues at Genesis and its parent company Digital Currency Group (DCG). The committee aims to provide a path for the recovery of assets. 

 

Gemini Earn program with Genesis

The funds stuck in Gemini Earn accounts are at the center of this problem. Gemini Earn is a program that the New York-based exchange had launched in partnership with Genesis. Furthermore, the program was launched back in February 2021 amid a bullish crypto market. 

The Earn program offered users an interest rate of up to 7.4% on their crypto deposits. Following the market downturn due to the collapse of FTX in November, Genesis suspended withdrawals on its platform. As a result, the funds of the Earn program customers have been stuck since. 

Over the past few days, the situation at Genesis has gotten worse with rising fear and uncertainty regarding its liquidity. The finances of parent firm DCG have also come under scrutiny. 

$900 million owed to Gemini 

Los Angeles-based investment bank Houlihan Lokey has been roped in to represent the financial interests of the creditor committee. According to the update by the firm, the proposed plan is based on information received from Genesis, DCG and their advisors. “The Creditor Committee expects an initial response this week”, the update read. 

As the financial advisor to the creditor committee, Houlihan Lokey started exploring a plan to resolve said liquidity issues earlier this week. Furthermore, according to a report published by Financial Times earlier this month, Genesis and DCG owe as much as $900 million to Gemini. 

The exchange fell victim to a data breach last week. According to a blog post, the attack targeted a third-party vendor associated with the exchange. Additionally, the perpetrators were able to gain access to 5,701,649 lines of information pertaining to Gemini customers’ email addresses and partial phone numbers.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.


Please select your Email Preferences.

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.