According to a tweet from Gemini co-founder Cameron Winklevoss, Gemini is part of a group of creditors that has given Genesis and Digital Currency Group a plan to “provide a path for the recovery of assets.”
At the peak of the bull market in February 2021, Gemini partnered with Genesis to launch Gemini Earn, which offered clients up to 7.4% interest on their crypto deposits. Due to the chaos that FTX caused, Genesis stopped withdrawals in the middle of November. This effectively froze Gemini Earn funds.
“This decision was made in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion,” said Amanda Cowie, DCG’s Vice President of Communications and Marketing at the time.
Impact of the Decision on Genesis
Amanda Cowie stated that the decision “impacts the lending business at Genesis and does not affect Genesis’s trading or custody businesses. Importantly, this decision has no impact on the business operations of DCG and our other wholly owned subsidiaries.”
Previous reports put the total amount owed to Gemini at $900 million out of a total of $1.8 billion owed to the creditors’ group.
The Creditor Committee has hired an investment bank, Houlihan Lokey, as a financial adviser, and law firm Proskauer Rose is acting as counsel.
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