Gemini Rejects Genesis And FTX Proposed Settlement
According to a 31 August court filing, Gemini has not agreed to the proposed settlement between FTX and Genesis.
Gemini cited an attempt to manipulate the voting process on the bankruptcy plan by the bankrupt companies in the filing. Gemini believes the deal will only benefit Digital Currency Group (DCG), the parent company of Genesis.
Earlier in August, FTX and Genesis reached an agreement on their debt claims. Both companies claimed their deal was aimed towards restructuring and it was fair.
Gemini believes that Genesis only agreed to the deal because it found no other way out of the situation and decided to use FTX to influence the bankruptcy voting process.
Gemini and Genesis' partnership began long before the latter's bankruptcy in 2022. The companies collaborated under the Gemini Earn program. After Genesis' collapse, Gemini sued its parent company, accusing it of withholding information about Genesis' potential bankruptcy. Gemini also claimed that Genesis owed more than $1 billion to program members at the time.
The Fair Deal Group has now sided with Gemini, also rejecting the terms of the Genesis and FTX deal.