Consideration will be based in part on whether the parties believe DCG will engage in good faith negotiations on a consensual deal.
Genesis’ Debt To Top 50 Creditors Exceeds $3.5 Billion
As per the court filing, Genesis has outstanding debts exceeding $3.5 billion to its prominent 50 creditors, such as Gemini, Cumberland, Mirana, MoonAlpha Finance, and VanEck’s New Finance Income Fund. Since its inception, the Genesis settlement process has been entangled in a web of controversy.
Following an “agreement in principle” between Genesis and DCG, a full settlement was submitted to the bankruptcy court in February. The initial settlement agreement aimed to provide creditors with 80% of the funds they had lost due to the bankruptcy.
Unfortunately, the Genesis creditors subsequently escalated their demands a few months later, causing the initial settlement plans to unravel. By May 22, Gemini intends to file a fresh claim, known as the “Gemini Master Claim,” to recover more than $1.1 billion of digital assets.
Genesis did not return these assets to approximately 232,000 Gemini Earn users who held active loans as of January 19, 2023. This plan would be self-contained, separate from any necessity for DCG’s consent or participation. It emphasizes the independence of the proposal, indicating that it does not rely on or require DCG’s approval or active engagement.
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