Gemini Earn Users Get Their Funds Back With The New DCG Plan
Digital Currency Group has offered a new deal to Gemini Earn creditors to get their cryptocurrencies back. The new agreement came as part of the Genesis bankruptcy proceedings.
DCG has been embroiled in proceedings between its bankrupt Genesis subsidiary and the affected Gemini exchange. New court filings have shed light on how DCG intends to resolve the disagreement. The company is offering unsecured creditors 70%-90% of the base recovery.
This agreement in principle is the second one. The past one was rejected by Gemini. The updated agreement seeks to renegotiate the terms of a $630 million loan between Genesis and DCG. Part of the funds will be repaid in cash and the other part in a two-year promissory note. DCG is hoping that the creditors will agree to the new deal as they will be able to take advantage of a rate hike on some of the assets.
However, DCG does not like the fact that Gemini is not putting up its own funds to repay its users. According to the company, Gemini Earn users could get up to 110% of what they require if the exchange allocates funds from its other programs wisely. The Winklevoss brothers have previously publicly accused DCG and Genesis of misleading investors. This prompted an FBI and SEC probe of DCG.