{"id":83815,"date":"2023-08-31T11:36:15","date_gmt":"2023-08-31T08:36:15","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=83815"},"modified":"2025-09-12T13:28:36","modified_gmt":"2025-09-12T10:28:36","slug":"genesis-creditors-call-dcg-proposal-unsatisfactory","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/genesis-creditors-call-dcg-proposal-unsatisfactory\/","title":{"rendered":"Genesis creditors call DCG proposal ‘unsatisfactory’."},"content":{"rendered":"

The court \u043f\u0440\u0438\u043e\u0441\u0442\u0430\u043d\u043e\u0432\u0438\u043b \u043f\u0440\u043e\u0446\u0435\u0441\u0441 \u0431\u0430\u043d\u043a\u0440\u043e\u0442\u0441\u0442\u0432\u0430<\/a> Genesis Global Holdco due to creditors’ disagreement with the terms of the recently proposed Digital Currency Group (DCG) deal.<\/p>\n

Preliminary Agreement<\/a> between the companies envisaged paying DCG two loans of $328.8 million with a two-year maturity and $830 million over seven years \u2014 from 70% to 90% of investors’ funds in dollar terms.<\/p>\n

\n

\u201cDCG’s contribution to satisfy creditors’ claims is wholly insufficient to make up even the undisputed amounts due on the loans, not to mention the valuable property claims asserted against the company, its directors and officers, including [CEO] Barry Silbert,\u201d the statement said.<\/p>\n<\/blockquote>\n

Borrowers opposed releasing the firm and its CEO from future lawsuits and threatened to block any final bankruptcy deal that would include such proposals.<\/p>\n

Gemini’s lawyers \u0437\u0430\u044f\u0432\u0438\u043b\u0438<\/a> that the bankruptcy terms proposed for Genesis are \u201cnot sufficiently detailed\u201d and do not provide guarantees for some of the largest creditors.<\/p>\n

\n

\u201cThe information provided by the debtors is limited and clearly shows that the proposed deal is woefully insolvent from an economic standpoint,\u201d Gemini’s lawyers said.<\/p>\n<\/blockquote>\n

On November 16, 2022, Genesis froze withdrawals<\/a> and the issuance of new loans. The firm cited \u201cheightened withdrawal requests\u201d from customers after the collapse of FTX<\/a> and the hedge fund Three Arrows Capital<\/a>.<\/p>\n

In January 2023 the firm and its subsidiaries Genesis Asia Pacific and Genesis Global Capital filed for bankruptcy<\/a>. Media reports said their liabilities exceed $3 billion<\/a>. This amount includes Gemini’s clients’ claims of $900 million .<\/p>\n

In May DCG defaulted on a $630 million payment<\/a> as part of compensation to Gemini Earn users.<\/p>\n

In July, Gemini Exchange filed suit<\/a> against Digital Currency Group and Barry Silbert, calling the latter \u201cthe architect and mastermind of the fraud.\u201d DCG later asked to dismiss the suit<\/a>.<\/p>\n

In August, FTX and Genesis reached a settlement<\/a> to pay Alameda Research $175 million.<\/p>\n","protected":false},"excerpt":{"rendered":"

The court halted Genesis Global Holdco’s bankruptcy proceedings due to creditors’ disagreement with the terms of the recently proposed Digital Currency Group deal.<\/p>\n","protected":false},"author":1,"featured_media":83816,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1300,184,1380],"class_list":["post-83815","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-dcg","tag-genesis-global-capital"],"aioseo_notices":[],"amp_enabled":true,"views":"37","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/83815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=83815"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/83815\/revisions"}],"predecessor-version":[{"id":83817,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/83815\/revisions\/83817"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/83816"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=83815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=83815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=83815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}