The post Gemini Proposes Recovery Plan, Angers Creditors appeared on BitcoinEthereumNews.com.

Gemini, the Winklevoss Twins crypto platform offering an exchange, custodian services, and – in partnership with Genesis – Earn services, has been in a bit of trouble ever since the latter filed for bankruptcy last January. Possible Recovery Plan Waiting For Court Approval Genesis, whose legal troubles stemmed partly from a loan to its parent company DCG that had not been repaid, has reportedly finally worked out a plan for repayment with said firm, allowing it to repay creditors – which included Gemini, given the nature of the custodial relationship between the two. Currently, Genesis owes Gemini a total of $1.6 billion. As a result, Gemini was able to reach out to its users yesterday, offering them a possible exit from the platform, which the community would have to vote on. “Earn users will soon receive an email with specific instructions on how to vote on the Plan and a link to the Genesis Solicitation Package, including the Disclosure Statement. The Bankruptcy Court found that the Disclosure Statement contains adequate information to enable Earn users to make an informed judgment about the Plan.” Earn Update: Solicitation of the Genesis Plan of Reorganization (Plan) began today. Earn users were sent an email with specific instructions on how to vote on the Plan and a link to the Genesis Solicitation Package, including the Disclosure Statement. The voting deadline is… — GeminiTrustCo (@GeminiTrustCo) December 13, 2023 If the vote goes through, all Gemini users – including those with less than $250 invested, which originally were not due to be compensated – will receive an amount equal to the value of their crypto stored on the exchange on the 19th of January 2022, when Genesis first went belly-up. However, the e-mail sent to creditors makes no notice of the elephant in the room – which…

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Filed under: News - @ December 15, 2023 4:24 am