Gemini Trust Lawyers Oppose Digital Currency Group’s Recovery Plan for Genesis Creditors
Summary:
Lawyers representing Gemini Trust are opposing a recovery plan proposed by Digital Currency Group (DCG) for creditors of Genesis Global. They accuse DCG of misleading Genesis creditors through false assertions in the plan. The legal battle stems from the involvement of Gemini and DCG in the Gemini Earn program, leading to Genesis' bankruptcy filing. Gemini claims Genesis owes over $3.5 billion to its top 50 creditors. Lawsuits have been filed against DCG and CEO Barry Silbert, alleging fraud. The disputes are ongoing.
Gemini Trust's lawyers are opposing Digital Currency Group's (DCG) proposed plan for Genesis Global creditors. In a recent court filing, Gemini's legal team accused DCG of misleading and manipulating Genesis creditors with false claims in the recovery plan. The plan, submitted to bankruptcy court, promised unsecured creditors a 70-90% recovery, while Gemini Earn users could expect a 95-110% recovery. However, Gemini's lawyers argue that DCG is trying to offer less than what is actually owed. They are calling for improved loan terms and transparency in the recovery plan. The legal dispute arises from the involvement of Gemini and DCG in the Gemini Earn program, which suffered setbacks leading to Genesis' bankruptcy filing earlier this year. Gemini claims that Genesis owes over $3.5 billion to its top 50 creditors and has filed a claim to recover assets for Earn users. Additionally, Gemini filed a lawsuit against DCG and its CEO, Barry Silbert, in June, alleging fraud. The U.S. Securities and Exchange Commission also filed a civil suit against Gemini and Genesis for allegedly selling unregistered securities via the Earn program. The legal battles between all parties involved are ongoing.
Published At
9/15/2023 9:25:46 PM
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