Cryptocurrency exchange Gemini continues to criticize Digital Currency Group’s (DCG) bankruptcy plan, claiming that DCG is trying to tempt its creditors into a bad deal.
“DCG continues its campaign of contrived, misleading, and inaccurate assertions in an attempt to gaslight creditors of the Genesis estate generally,” the filing states.
Gemini Firmly Opposes DCG’s Creditors Approach
In a recent court filing, Gemini alleges that DCG’s bankruptcy plan is an attempt to underpay its Genesis creditors through an unfavorable agreement.
“The DCG Statement must be seen for what it is: DCG’s attempt to bait the Gemini Lenders into accepting a deal that would allow DCG to pay far less than it owes.”
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Gemini vows to continue opposing DCG’s bankruptcy plan. It claims to do so to maximize the recovery of its customer’s lost assets. The filing states,
“Gemini will continue fighting against DCG’s ‘starve them out’ approach to ensure that DCG pays a just and adequate amount. The Gemini Lenders deserve more value from DCG, and there is more to get.”
Strong Criticism of DCG In Recent Times
The crypto exchange asserts that DCG persists in denying its “central role” in the Genesis collapse. It further argues that DCG refuses to accept any responsibility at all.
Gemini has been vocal about its disapproval of DCG’s bankruptcy plan in recent times.
On August 31, Gemini argued that the bankruptcy plan was not clear and lacked crucial information for its creditors.
This came after DCG debtors tentatively agreed on the plan with Genesis creditors. Gemini objected because the agreement lacked essential details about how creditors would be paid.
Creditors of Genesis have yet to receive payment for loans that matured in May, according to a recent court filing. It reports the total value of these outstanding loans at approximately $630 million.
On July 7, Gemini initiated legal action against DCG and its founder, Barry Silbert. In the lawsuit, Gemini’s CEO, Cameron Winklevoss, alleged that Silbert engaged in deceptive conduct towards the exchange.
Winklevoss detailed that when Gemini opted to discontinue its Earn program in October 2022, Silbert approached Gemini, attempting to persuade them to keep the program running, even though he was aware of Genesis’ significant insolvency.
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