Gemini Earn Users Could Recover Almost All Assets as Part of New Agreement – Here’s the Latest
Gemini Earn users may be able to recover almost all their cryptocurrency holdings as part of a new agreement between Digital Currency Group (DCG) and Genesis.
In a Wednesday filing, DCG outlined a proposal that will allow creditors to recover between 70% to 90% of their funds, with a significant portion of the recovery in digital currencies.
"Genesis estimates that the agreement in principle will provide a 70-90% recovery for all unsecured creditors," the filing read.
"Today’s filing provides further clarity on the estimated return rates for Gemini Earn customers, which amount to illustrative recoveries between 95-110% of their claims."
The proposal, formalized in August, is the second agreement in principle submitted, with the previous one suggesting DCG equity as compensation.
Under the new agreement, creditors would also have the opportunity to benefit from the appreciation of cryptocurrencies, potentially receiving amounts equivalent to "$85,000 for BTC and $8,500 for ETH."
DCG hopes that this additional incentive will motivate creditors to commit to the proposed deal.
DCG described the return rates as "remarkable" for any liquidating Chapter 11 case, especially considering the volatility of the cryptocurrency industry.
The firm has made headlines this year due to ongoing negotiations between its subsidiary Genesis and its creditors, particularly Gemini.
The feud between Gemini co-founders Tyler and Cameron Winklevoss and Silbert escalated when Genesis froze withdrawals from its retail lending program, Earn.
The Winklevoss twins accused Silbert and Genesis of misleading investors, leading to investigations by the US Federal Bureau of Investigation and the Securities and Exchange Commission.
Pending a vote from creditors
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