Digital Currency Group (DCG) has unveiled a creditor agreement plan that could potentially provide Gemini Earn users with full compensation for their claims against the now-bankrupt cryptocurrency lender, Genesis. According to the filing submitted on September 13, DCG’s proposed agreement offers a recovery range of 70-90% for unsecured creditors of Genesis, with a significant portion of the recovery being made in digital currencies.
Remarkably, Gemini Earn users stand to recover an estimated 95-110% of their claims, signaling a highly favorable outcome for these users. DCG further outlined that this plan could allow creditors to capture the appreciation of cryptocurrency values, potentially resulting in substantial gains.
DCG stated that its estimation of recovery for Gemini Earn users is rooted in the assumption that the cryptocurrency exchange, Gemini, may not be contributing any funds to enhance the recovery process. However, DCG noted that if Gemini were to fulfill its prior commitment of contributing $100 million, it would significantly bolster the prospects of Gemini Earn users receiving more than complete compensation for their losses.
This proposed creditor agreement plan by DCG reflects ongoing efforts to address the fallout from Genesis’ bankruptcy and represents a positive step towards providing affected users with substantial recovery.
