A creditor committee, which includes cryptocurrency exchange Gemini, has presented a plan to resolve the “liquidity issues” that have bedeviled Genesis and its parent company Digital Currency Group (DCG), as well as to “provide a path for the recovery of assets.”
“Houlihan Lokey presented a plan on behalf of the Creditor Committee to resolve the liquidity issues at Genesis and DCG and provide a path for the recovery of assets,” said Cameron Winklevoss, Gemini’s president and co-founder.
Genesis and its parent company DCG are said to owe Gemini Earn users $900 million.
This was due to third-party contagion involving Genesis, the primary provider of the Earn service. On the same day, Genesis suspended withdrawals, citing the fallout from FTX’s collapse and “abnormal withdrawal requests.”
Houlihan Lokey is a New York-based investment firm that specializes in creditor advisory, having assisted in similar proceedings for the Lehman Brothers and WorldCom.
Gemini Still Working With Genesis, Digital Currency Group to Unlock Earn User Withdrawals.
(Reporting by Shikha Singh, Editing by Laxmikant Khanvilkar)
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