Consideration will be based in part on whether the parties believe DCG will engage in good faith negotiations on a consensual deal.
Genesis’ Debt To Top 50 Creditors Exceeds $3.5 Billion
As per the court filing, Genesis has outstanding debts exceeding $3.5 billion to its prominent 50 creditors, such as Gemini, Cumberland, Mirana, MoonAlpha Finance, and VanEck’s New Finance Income Fund. Since its inception, the Genesis settlement process has been entangled in a web of controversy.
Following an “agreement in principle” between Genesis and DCG, a full settlement was submitted to the bankruptcy court in February. The initial settlement agreement aimed to provide creditors with 80% of the funds they had lost due to the bankruptcy.
Unfortunately, the Genesis creditors subsequently escalated their demands a few months later, causing the initial settlement plans to unravel. By May 22, Gemini intends to file a fresh claim, known as the “Gemini Master Claim,” to recover more than $1.1 billion of digital assets.
Genesis did not return these assets to approximately 232,000 Gemini Earn users who held active loans as of January 19, 2023. This plan would be self-contained, separate from any necessity for DCG’s consent or participation. It emphasizes the independence of the proposal, indicating that it does not rely on or require DCG’s approval or active engagement.
Featured Image From Business Insider, Chart From TradingView.com
