![]() ![]() In 2015, the twins launched the Gemini cryptocurrency exchange. BTC was worth roughly 60,000 at the time of writing, but it was 120 then. Publicly, the company announced that it “assumed certain liabilities of Genesis. Well, it seems they put that money to good use as they used it to gather up to 11 million worth of bitcoin by 2013. They allegedly used a financial solution to “pretend to” have fixed the issues. The Gemini co-founder claims that Genesis’ parent company never took on debt from the crypto lender. The crypto lender was left holding over $1 billion in debt, which was allegedly “absorbed” by the DCG. Winklevoss Unveils DCG’s “Toxic Trade”Īccording to the document, DCG and Genesis lent over $2 billion to 3AC before its collapse. Genesis lenders, including Earn users, have been seriously harmed and deserve a resolution for the recovery of their assets. They did so in an effort to mislead lenders into believing that DCG had absorbed massive losses that Genesis incurred from the Three Arrows Capital Ltd. These parties (Silbert and others) conspired to make false statements and misrepresentations to Gemini, Earn users, other lenders, and the public at large about the solvency and financial health of Genesis. Gemini is worth considering if youre interested in crypto investing or trading because it is one of the safest cryptocurrency exchanges available (Its main. 16 22 22 comments Add a Comment Sylentwolf8 2 yr. The crypto lender was allegedly affected by the collapse of one of its major partners, Three Arrows Capital (3AC). Gemini Earn customers are behind institutional creditors, secured creditors, and priority claims in carving out the company’s remaining assets.According to the document, Genesis was operating under a negative balance sheet for years. In a further blow, Genesis classified Gemini as a “Class IV” unsecured creditor. Gemini terminated the Gemini Earn program earlier this month. However, the $284.3 million may be all that is due. worth of crypto assets from hundreds of thousands of investors, the SEC said. By doing so, Gemini earned a fee as high as 4.29 on returns paid to Gemini Earn investors. This could further delay the bankruptcy case, meaning Gemini Earn customers may be set for a long wait before recovering their funds. However, Gemini will likely challenge the claim, resulting in court action. The dispute requires the judge overseeing the bankruptcy to make a call on whether the agreement stands. Given the “behind-the-scenes” agreement between the two parties, Genesis now claims the $769 million balance owed to Gemini Earn customers has been paid with the GBTC share sale. However, with a balance owed of $769 million, the shortfall amounts to $484.7 million. Pros & Cons Highlights Additional Reading Note: In response to the FTX crisis, Geminis lending partner, Genesis Global Trading, recently announced it is suspending redemptions and new loan. 16, 2022, Genesis froze withdrawals from its platform and informed Gemini that it had sold the collateralized GBTC shares at $9.20 per share, netting $284.3 million. 11, 2022, following weeks of insolvency rumors beforehand. Incidentally, FTX filed for bankruptcy on Nov. This arrangement was later extended on Nov. 15, 2022, Genesis pledged 30.9 million GBTC shares as collateral for Gemini Earn’s customers’ tokens. In an unexpected development, Genesis now claims it has fulfilled its obligations to Gemini by paying out the proceeds of a private sale of Grayscale Bitcoin Trust (GBTC) shares that collateralized the debt. The bankruptcy filing showed that Genesis owed its creditors $3.5 billion the largest is Gemini, with a $769 million balance due. 19, triggering panic among its creditors. Customers’ tokens were then loaned to counterparties, in this case, Genesis, who generate yield by trading and investing.Īfter months of insolvency rumors, Genesis filed for Chapter 11 bankruptcy on Jan. Gemini Earn paid rewards to customers who lent cryptocurrency to the program. ![]() Gemini Earn customers face a potential $485 million shortfall in their bid to be made whole following the Genesis bankruptcy.
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