DCG proposes repayment plan for Genesis creditors
Digital Currency Group (DCG), the parent company of the insolvent crypto lending firm Genesis, is pushing for a repayment plan for its creditors, which includes participants in the Gemini Trust Co.’s Earn program.
In a filing on Wednesday, Sep. 12, DCG assured Gemini Earn program investors that they could potentially receive complete reimbursement, equal to or even exceeding their initial investment.
Partial repayments will be made in Bitcoin (BTC) and Ethereum (ETH).
The filing also indicates that other unsecured creditors of Genesis could potentially recover between 70% and 90% of their investments, which stands as a notable improvement compared to the expected payouts to customers of other insolvent crypto services like Voyager Digital and BlockFi Inc.
This suggestion comes as part of ongoing efforts to gain support from Earn program investors and other Genesis creditors.
There has been skepticism from Gemini Trust Co., which rejected the proposed repayment plan earlier this month.
Gemini cited a lack of concrete evidence to ensure that Earn users would recover between 70% and 90% of their investments.
Moreover, DCG’s proposal has received limited endorsement from Genesis creditors.
DCG countered Gemini Trust Co.’s stance by pointing out that the interests of Gemini and its founders, Tyler and Cameron Winklevoss, may not align entirely with those of Earn program participants.
The Earn program, a joint effort between Genesis and Gemini, initially promised clients approximately 8% interest on their digital asset holdings.
However, this initiative is currently entangled in a lawsuit filed by the U.S. Securities and Exchange Commission (SEC), alleging that it constituted an unauthorized securities offering.
Genesis and Gemini have strongly refuted these allegations.
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