Gemini Hopes for Swift Genesis Mediation Process
- Genesis, its parent company Digital Currency Group, the Unsecured Creditors Committee, and Gemini have all agreed to a 30-day mediation process.
- Although supportive of the process, Gemini expressed the “need for urgency” for a final resolution to be reached “as soon as possible”.
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Cryptocurrency exchange Gemini has expressed its frustration on record over the pace of progress in Genesis’ bankruptcy process, and the new 30-day mediation period, the company said via Twitter late on 30 April.
According to the announcement, Genesis, its parent company Digital Currency Group (DCG), the Unsecured Creditors Committee (UCC), and Gemini all agreed to a 30-day mediation process in court on Friday, following the request from Genesis earlier in the week. Although Gemini is “supportive of mediation”, the exchange noted there is a “need for urgency” for a final resolution to be reached “as soon as possible”.
In a Friday update, Gemini said the mediation will be “narrowly focused on DCG’s economic contribution to the bankruptcy estate”, and that the proposed process provided for two court meetings before 8 May. The exchange noted the importance of this date, as DCG owed $630 million to the bankruptcy estate by 9-11 May, and if it is unable to pay or restructure its debt “DCG risks defaulting on its obligations”.
Genesis had reached an “agreement in principle” with DCG, UCC, and Gemini back in February, which would have seen creditors recover an estimated 80% of their assets lost after the collapse of the crypto lender in November. A subset of creditors, however, walked away from the preliminary restructuring agreement last week, forcing Genesis to file a Motion for Mediation with the bankruptcy court on 25 April.
- A little over $13 million in altcoins were sent to crypto exchanges Binance and Coinbase in the past 24 hours, which is in accordance with a September court order.
- The court ordered a phased liquidation process, which allows the bankruptcy estate to sell $3.4 billion worth of digital assets over a certain period of time.
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- An investigation from the New York Attorney General’s office has allegedly found that Gemini was aware of Genesis’ weak financial position, but still lied to investors.
- The lawsuit is looking to ban DCG, Genesis, and Gemini from the New York financial industry, seek restitutions for investments, and the return of “ill-gotten gains”.
- The bankrupt crypto lender said that if its reorganization plan is approved, it is ready to start repaying its customers using $2 billion in BTC and ETH by the end of the year.
- If given the green light, Celsius will restart its business under the “NewCo” brand without any funded debt, and with seed funding of up to $450 million.