{"id":88257,"date":"2023-12-14T14:12:06","date_gmt":"2023-12-14T12:12:06","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=88257"},"modified":"2025-09-13T16:52:03","modified_gmt":"2025-09-13T13:52:03","slug":"gemini-earn-clients-will-receive-only-61-of-assets-under-restructuring-plan","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/gemini-earn-clients-will-receive-only-61-of-assets-under-restructuring-plan\/","title":{"rendered":"Gemini Earn Clients Will Receive Only 61% of Assets Under Restructuring Plan"},"content":{"rendered":"<p>Gemini Earn users would recover only 61% of the value of lost assets under the worst-case scenario, according to the restructuring plan. The voting period will run until 4:00 pm <span data-descr=\"Eastern Standard Time, UTC-5\" class=\"old_tooltip\">EST<\/span> on January 10, 2024.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Earn Update: Solicitation of the Genesis Plan of Reorganization (Plan) began today. Earn users were sent an email with specific instructions on how to vote on the Plan and a link to the Genesis Solicitation Package, including the Disclosure Statement. <\/p>\n<p>The voting deadline is\u2026<\/p>\n<p>\u2014 GeminiTrustCo (@GeminiTrustCo) <a href=\"https:\/\/twitter.com\/GeminiTrustCo\/status\/1735069871929524726?ref_src=twsrc%5Etfw\">December 13, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>If the plan is approved, it will be considered by the bankruptcy court on February 14, 2024.<\/p>\n<p>Users were sent voting instructions and a link to the Genesis Solicitation Package.<\/p>\n<p>Under the reorganisation plan, creditors will receive a payout in a defined ratio to their Earn balances as of January 19, 2023\u2014the date on which Gemini&#8217;s partner, the lending platform Genesis Global Capital, <span data-descr=\"Digital Currency Group\" class=\"old_tooltip\"><a href=\"https:\/\/forklog.com\/en\/news\/genesis-part-of-digital-currency-group-files-for-bankruptcy\"> filed for bankruptcy<\/a><\/span>.<\/p>\n<p>Bloomberg analyst James Seyffart described the plan as &#8216;brutal&#8217;. He noted that even in a favorable scenario [100% recovery at prices as of January 19, 2023] Bitcoin and Ethereum would be valued at $20,940 and $1,545.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">This could be brutal. Granted seems to be worst case scenario but Gemini Earn users could be getting potentially just 61% of the value of their crypto from Jan 19, 2023. WOOF. <\/p>\n<p>Even at 100% it stings based on current prices. Thats 61%-100% of:<\/p>\n<p>Bitcoin $20,940<br \/>Ethereum $1,545 <a href=\"https:\/\/t.co\/A6u28U3dsi\">https:\/\/t.co\/A6u28U3dsi<\/a> <a href=\"https:\/\/t.co\/5SKZnlRjr9\">pic.twitter.com\/5SKZnlRjr9<\/a><\/p>\n<p>\u2014 James Seyffart (@JSeyff) <a href=\"https:\/\/twitter.com\/JSeyff\/status\/1735111306619785535?ref_src=twsrc%5Etfw\">December 14, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In the worst case (payouts at 61%), the calculation would be based on $12,773 per unit of the first cryptocurrency.<\/p>\n<p>Many users voiced their opposition to the proposed terms, urging a vote against the restructuring plan.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I vote no because this is a spit in our faces. Absolute disgrace<\/p>\n<p>\u2014 Andrew Aleid (@AndrewAleid) <a href=\"https:\/\/twitter.com\/AndrewAleid\/status\/1735086540433351078?ref_src=twsrc%5Etfw\">December 13, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8216;I vote against, because this is a spit in our faces. An absolute disgrace&#8217;,<\/em> \u2014 said by one of the clients.<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Maybe 61%? Maybe 100%? I&#8217;m supposed to vote on this? How is this far? You stole our money. Give it ALL back, every single dollar.<\/p>\n<p>\u2014 Leslie (@mrsdrianmalcolm) <a href=\"https:\/\/twitter.com\/mrsdrianmalcolm\/status\/1735088429350654200?ref_src=twsrc%5Etfw\">December 14, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8216;You stole our money. Return all, every single dollar&#8217;,<\/em> \u2014 wrote another.<\/p>\n<\/blockquote>\n<p>Gemini Earn clients&#8217; claims against Genesis<a href=\"https:\/\/forklog.com\/en\/news\/ft-reports-genesis-and-dcg-owe-gemini-clients-900-million\"> were valued at $900 million<\/a>.<\/p>\n<p>In May <span data-descr=\"Digital Currency Group\" class=\"old_tooltip\">DCG<\/span> <a href=\"https:\/\/forklog.com\/en\/news\/dcg-misses-630m-payment-to-gemini-earn\">defaulted on a payment of $630 million<\/a> as part of compensation to Gemini Earn users.<\/p>\n<p>In July, the Winklevoss twins&#8217; exchange <a href=\"https:\/\/forklog.com\/en\/news\/gemini-sues-dcg-and-barry-silbert\">filed a lawsuit<\/a> against the company and its founder Barry Silbert, calling the latter &#8216;the architect and instigator of fraud&#8217;. Later in Digital Currency Group <a href=\"https:\/\/forklog.com\/en\/news\/dcg-seeks-to-dismiss-geminis-lawsuit\">they asked to dismiss the suit<\/a>.<\/p>\n<p>In September, DCG <a href=\"https:\/\/forklog.com\/en\/news\/genesis-restructuring-uk-regulatory-changes-spook-bybit-and-other-crypto-industry-developments\">proposed<\/a> a new restructuring option for Genesis Global Capital. The document offers unsecured creditors a base recovery of 70\u201390% of the amount of the claims.<\/p>\n<p>The agreement, awaiting creditor approval, is aimed at revising the terms of the $630 million loan between Genesis and DCG.<\/p>\n<p>It had been anticipated that Gemini Earn users with collateral totalling about $607 million could potentially receive up to 110% of total claims.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gemini Earn users would recover only 61% of the value of lost assets under the worst-case scenario, according to the restructuring plan.<\/p>\n","protected":false},"author":1,"featured_media":88258,"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":[1300,1162,184,719,1380],"class_list":["post-88257","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-court-cases","tag-dcg","tag-gemini","tag-genesis-global-capital"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/88257","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=88257"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/88257\/revisions"}],"predecessor-version":[{"id":88259,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/88257\/revisions\/88259"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/88258"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=88257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=88257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=88257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}