With the agreement announced today between US cryptocurrency exchange Gemini, Genesis Global Capital, LLC (Genesis), and Digital Currency Group, Gemini Earn users are one step closer to getting their money back.
Gemini and Genesis have been feuding in public over the Gemini Earn program, which lets people put their cryptocurrencies in a bank-like account and earn between 0.45% and 8% interest. Genesis was the service’s main partner.
Gemini, Genesis make first step to recover funds in new agreement
Gemini will give Earn users up to $100 million more, and a press release says that the agreement with DCG includes selling Genesis Global Trading.
Also, DCG will trade its existing $1.1 billion note due in 2032 for convertible preferred stock and refinance its existing term loans due in 2023 in two tranches with a total value of about $500 million, which will be paid to creditors.
Genesis stopped withdrawals in November 2022, which made users and the Winklevoss brothers threaten to sue the company and DCG founder Barry Silbert. They wanted Genesis to come up with a plan for paying back the $900 million loan Gemini gave to the now-bankrupt Genesis Global.
The crypto brokerage firm filed for chapter 11 bankruptcy on Jan. 19. It is one of a growing number of companies that have failed since the spring of 2022.