The Gemini-Genesis battle has taken several turns over the last couple of months. In a new turn of events, Gemini accused the Digital Currency Group [DCG] of missing out on a $630 million payment. The exchange revealed that DCG was obligated to carry out the payment last week. This further added a new dimension to the ongoing dispute.
Gemini and Genesis have been embroiled in a highly publicized dispute surrounding the Gemini Earn program. As the primary partner for the exchange’s earn service, Genesis unexpectedly suspended withdrawals in November 2022. This decision sparked anger from the Winklevoss twins. In response, they threatened legal action against the parent company of Genesis, DCG, as well as its founder Barry Silbert.
Adding to the conflict, Gemini pressed Genesis to develop a repayment plan for the $900 million loan that Gemini had extended to the now-bankrupt Genesis Global. The clash between the two parties continues to unfold in the public eye. In its latest update, the Winklevoss-led exchange mentions the way forward following the missed payment.
“Genesis, the Unsecured Creditors Committee [UCC], the Ad Hoc Group of Creditors [AHG], and Gemini are considering whether to provide a forbearance to DCG to avoid a DCG default. Consideration will be based in part on whether the parties believe DCG will engage in good faith negotiations on a consensual deal.”
In the event that a resolution cannot be reached, the exchange is considering proposing an “amended plan of reorganization.” This could proceed without the consent or participation of DCG. Furthermore, the alternative plan would be put forward as an alternative course of action to address the ongoing dispute.
Gemini’s Master Claim to be filed today?
In addition to exploring various strategies to address the Genesis and DCG situation, the exchange has introduced a plan called the “Gemini Master Claim.” This plan entails the exchange seeking the recovery of over $1.1 billion worth of cryptocurrencies from Genesis. By pursuing this avenue, Gemini aimed to reclaim the substantial amount of digital assets it believes, it is owed by Genesis.
According to the exchange, Genesis has allegedly declined to return funds to approximately 232,000 users. These users had active loans as of Jan. 19, 2023. These users were participants in the Gemini Earn program and are now facing difficulties in retrieving their funds from Genesis.