Key Points:
- Gemini donates $100 million to struggling crypto company Genesis’ recovery and restructuring plan.
- This is an essential step towards recovering assets from all Genesis creditors and demonstrates Gemini’s commitment to helping users of its Earn product be fully compensated.
The Winklevoss twins’ cryptocurrency company Gemini donates $100 million in cash to its bankrupt partner Genesis’s recovery and restructuring plan. This amount will be reserved for their Earn users, demonstrating their commitment to recovering the affected users’ funds.
Genesis’ attorney said at the court hearing on Monday that as part of a settlement with Genesis Global Capital and its parent company Digital Currency Group, which went bankrupt, cryptocurrency exchange Gemini will donate $100 million to Genesis. According to CNBC, US cash supports Genesis restructuring transactions and recovery plan.
Gemini told its users in the letter that this plan is an essential step towards recovering assets from all Genesis creditors, demonstrating Gemini’s continued commitment to helping Earn users recover entirely whole.
“This plan is a critical step forward towards a substantial recovery of assets for all Genesis,(…). It demonstrates “Gemini’s continued commitment to helping Earn users achieve a full recovery.”
Gemini told its users in correspondence viewed by CNBC
Earlier today, it was reported that DCG and Genesis had reached a preliminary agreement with significant creditors on a restructuring plan. The main deal included closing Genesis’ loan book and selling the bankrupt Genesis company.
The investment term sheet also includes the refinancing of the remaining debt. According to news on January 20, Genesis filed for Chapter 11 bankruptcy with a US court, with assets and liabilities worth between $ 1 billion and $ 10 billion.
Previously, the Winklevoss Twins publicly blamed Silbert’s mismanagement of Genesis for problems with one of their products, Earn, which boosted profits by up to 8% on customer deposits.
DCG crypto lender Genesis filed for Chapter 11 bankruptcy protection in New York on January 19. Genesis owes creditors, including Gemini and its users, billions of dollars.
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