Gemini exchange offered Genesis and DCG a refund plan for its customers

The Genesis and DCG Committee of Lenders has proposed a plan to resolve liquidity problems for the companies and expects to hear their reasoned response by the end of the week. Gemini co-founder Cameron Winklevoss said the Creditor Committee, which includes the Gemini cryptocurrency exchange, has sent Genesis and the Digital Currency Group (DCG) an “asset recovery plan for Earn users.” Houlihan Lokey Investment Bank acted as financial advisor to the Creditors Committee. The legal purity of the transaction will be monitored by Proskauer Rose. The parties have not disclosed the details of the proposed plan, but say the Committee is expecting a response this week. In February 2021, Gemini partnered with Genesis to launch its Gemini Earn program. This program offered 7.4% per annum on customer deposits. But last month, the Gemini crypto exchange suspended withdrawals, freezing Gemini Earn funds. As a reminder, the total debt of troubled companies to Gemini is estimated at $900 mn out of the total debt of $1.8 bln owed to the group of creditors.