The crisis at cryptocurrency exchange Gemini may come in a clearer light after Digital Currency Group (DCG) filed a cash return plan in a bankruptcy court.
Such information was confirmed last Monday by the twin brother Cameron Winklevoss (6). Brokerage Gemini was co-founded by him and Tyler Winklevoss, who made millions in the past suing Facebook.
DCG, on the other hand, is a big company in the cryptocurrency market, which owns the Genesis operation and other brands such as Coindesk. As it is not going through a good time, the market feared that the bankruptcy could devastate the market in 2023. By all indications, the new bailout should appease investors.
With DCG’s plan, the Gemini crisis sees light at the end of the tunnel
According to Cameron, the new plan presented in a bankruptcy court is an important step for the market. This is because the creditors of the Genesis platform are starting to hope for the recovery of their assets.
“Today, Gemini reached an agreement in principle with Genesis Global Capital, LLC (Genesis), DCG and other creditors on a plan that provides a path for Earn users to recover their assets. This settlement was announced today in the Bankruptcy Court.”
1/ Today, @Twin reached an agreement in principle with Genesis Global Capital, LLC (Genesis), @DCGco, and other creditors with a plan that provides a path for Earn users to recover their assets. This agreement was announced today in bankruptcy court.
—Cameron Winklevoss (@cameron) February 6, 2023
To speed up resolution of the problem, Gemini pledged to provide $100 million to help DCG’s creditors emerge from the crisis. The company was considered a giant market platform until then, but by filing for bankruptcy in January 2023, it showed the risks of platforms.
For example, those who had money in the Earn product were the users affected by the withdrawal ban.
“We still have a lot of work to do,” says executive
Despite the temporary relief for DCG investors, the Gemini executive reminded that the company’s crisis is far from over. According to Cameron Winklevoss, there is still a lot of work to be done to bring the situation to a positive conclusion for all parties involved.
“There is still a lot of work to be done to complete this process, including further due diligence of Genesis’ finances and court approval of this plan, but we are confident that we now have a framework in place to execute. “
According to him, everyone involved has been working to overcome the problems since November 16, 2022, when the collapse of the DCG became known.
To keep customers up to date with everything that’s happening, Gemini today created a page with information about the Earn product, without releasing withdrawals to investors.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
