The US-based conglomerate of cryptocurrency-centric companies, Digital Currency Group (DCG), has come up with a new agreement plan for the creditors of bankrupt Genesis Global. This proposal also outlines a path for Gemini Earn users to recuperate nearly all of their claims.
In a recent filing on September 13th, DCG proposed a plan that aims to give unsecured creditors a 70–90% recovery with a meaningful portion of the recovery in digital currencies.” For Gemini Earn users, the plan suggests they could recover around 95-110% of their funds without any contribution from Gemini.
DCG also suggested, “If Gemini were to agree to provide $100 million to Gemini Earn users under the Proposed Agreement, as it previously did, there would be little doubt Gemini Earn users would receive more than full recovery.”
This is the second agreement in principle submitted in the case. The previous proposal from DCG was met with criticism from creditors, who called it “wholly insufficient.” Genesis has also filed a lawsuit against DCG for defaulted loans worth around $600 million.
DCG’s plan for substantial recovery for unsecured creditors and Gemini Earn users is a positive and promising resolution to the Genesis Global bankruptcy.