The parent company of Genesis, Digital Currency Group (DCG) allegedly missed a $630 million payment to Gemini.
The relationship between Genesis and Gemini has turned sour after December 2022. Genesis was a partner in the Gemini Earn program, but after it paused withdrawals, the exchange, owned by twins Cameron and Tyler Winklevoss, could not fulfill its customer’s withdrawal requests.
DCG Missed Payment, What Next?
Gemini updated through its website that DCG missed a $630 million payment due last week. Now the company will have to decide whether to give forbearance to DCG.
If the forbearance deal does not strike, the group plans to go ahead with a proof of claim (Master Claim) plan to clawback over $1.1 billion worth of funds. Gemini wrote:
”The Master Claim will also include a claim for interest, loan fees, and new tokens, if any, owed to Earn users as of Jan. 19, 2023.”
BeInCrypto reported on Feb. 7 that Gemini and Genesis reached an agreement over the Earn program. The agreement included Gemini contributing $100 million in additional funds to Earn users.
The development escalated when Cameron Winklevoss, the co-founder of Gemini, wrote an open letter to DCG’s founder Barry Silbert.
The letter focused on seeking a resolution for the Earn users. Users’ funds were stuck in Genesis after it halted withdrawals in November 2022.
These companies are the victims of the FTX collapse. They went into a cash crunch after the empire of Sam Bankman-Fried came tumbling down.
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