Crypto Exchange Gemini Objects to Genesis’ Bankruptcy Resolution Proposal

Crypto exchange Gemini has strongly opposed Genesis’ proposal for bankruptcy resolution, citing a lack of necessary specifics and inadequate assurances for major debtors. This objection from Gemini joins two other creditor groups who also object to the proposed agreement.

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Gemini Claims Agreement Lacks Clarity 

Gemini’s legal representatives argue that the presented “agreement in principle” between the involved parties, including Digital Currency Group (DCG), lacks the clarity needed for a successful resolution. The objection filed by Gemini points out that the information provided by Genesis remains limited and highlights the agreement’s deficiencies in terms of both specifics and economic considerations. Moreover, the filing emphasizes that DCG has yet to address its outstanding loans to the tune of approximately $630 million that were due in May 2023.

Fair Deal Group and Ad Hoc Group Oppose GenesisÔÇÖ Bankruptcy Resolution Proposal

Another group of creditors, known as the Fair Deal Group, echoes Gemini’s sentiments and raises similar concerns about the inadequacies of the proposed plan. The group claims that the suggested agreement fails to comprehensively secure all of Genesis’ debts and casts doubt on the project’s ability to execute a viable plan.

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In response to the objections, Genesis’ bankruptcy proceedings have faced challenges on multiple fronts. The Ad Hoc Group of Genesis Lenders also expresses skepticism about the role of Digital Currency Group in the proposed resolution, considering it insufficient to address the creditor claims adequately. These creditor groups have called for an end to the exclusive negotiation period that allowed Genesis to mediate its bankruptcy terms, highlighting the repeated extensions sought by the debtors and their promises of a forthcoming resolution involving DCG.

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The objections from Gemini and other creditor parties shed light on the complexities surrounding Genesis’ bankruptcy proceedings. As the cryptocurrency lender grapples with its financial troubles in the aftermath of the 2022 crypto downturn, creditor groups are demanding more transparent, comprehensive, and satisfactory terms to resolve the situation.

When FTX collapsed and filed for bankruptcy in November last year, its ripple effect was felt across the industry, leading to several other major companies filing for bankruptcies.

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