Gemini Earn creditors are unhappy with the proposed reorganization plan, under which their BTC assets for recovery could actually be reduced to 30% of their value at current prices.
On December 13, Gemini Trust sent an email to creditors with details of the proposed plan. The company put it up for a vote, which will be held until 4:00 p.m. EST on January 10, 2024. Users received voting instructions and a link to the Genesis proposal package.
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Under the scheme, Gemini Earn users will only be able to recover 61% of the value of their lost assets in a worst-case scenario. Creditors can expect to be paid a percentage of their Earn balances as of January 19, 2023, the date of Genesis Global Capital's bankruptcy filing.
Gemini withdrew hundreds of millions of dollars from Genesis to support the program before Genesis filed for bankruptcy. Now the exchange is trying to recover $1.6 billion.
However, at the exchange rate of January 19, Bitcoin would be valued at $20,940 and Ethereum at $1,545, which would be extremely "tough" for lenders.
Thus, in the worst case, creditors will be repaid 61% of the assets. For 1 Bitcoin of creditors in Earn, they will receive only $12,773, which is a third of its real price today.
Gemini's creditors are calling with indignation to vote "against" this plan. In particular, one of those affected, Andrew Alade, said, "I'm voting against it because it's a spit in our faces. An absolute disgrace". Many of the creditors believe that everyone should be repaid in full. "Anything less is unacceptable."
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