Gemini strongly opposes Genesis bankruptcy plan
Gemini strongly opposes Genesis bankruptcy plan
Cryptocurrency exchange Gemini opposes the bankruptcy plan of cryptocurrency lender Genesis, which is undergoing Chapter 11 proceedings.
The exchange's attorneys said Genesis' proposed bankruptcy resolution lacks details and protections for large debtors.
"On August 29, 2023, the debtors disclosed an 'agreement in principle' with the Committee and DCG [Digital Currency Group], which unfortunately lacks detail and remains subject to final documentation," Gemini said in a statement.
According to CoinDesk, Genesis filed for bankruptcy in January. The August 29 filing stated that unsecured creditors could receive up to 90% of the dollar equivalent of their assets.
It's worth noting that the Genesis Creditors Task Force has also previously made statements that the Digital Currency Group's role in repaying even undisputed amounts owed on the loan is clearly overstated.
The parties called for an end to the special treatment that allowed Genesis to negotiate the terms of the bankruptcy settlement through mediation.
"The debtors have repeatedly promised that a plan to resolve the claims against DCG is imminent as they seek extension after extension of mediation periods, hearing dates, and bid deadline," Gemini added.
In addition, the attorneys emphasized that DCG has not made a single payment on the loans, which are due in May 2023.
See also: KuCoin imposed restrictions on P2P transfers for Russian users.
