- Gemini exchange has updated Earn users of a new process to mediate the final resolution of DCG group’s $630 million debt owed to Genesis.
- The mediation will be focused on DCG’s contribution to the benefit of Gemini’s Earn users.
- The DCG update is expected to have an impact on Gemini’s Earn users who lost their investment in the exchange’s product.
Gemini, an American cryptocurrency exchange and custodian has updated its users about the progress in the mediation process to get users’ investment back. The next 30-days are critical to the mediation process between Genesis, Gemini and the DCG Group.
Two key dates for Earn users are May 8, since mediation meetings are scheduled before that and May 9 to 11 when DCG owes Genesis bankruptcy estate $630 million. There is a risk of the DCG’s default on its debt and this could negatively affect Earn users.
Also read: PEPE holders realise massive profits as Pepe Coin rallies 300% over the weekend
Update for Gemini Earn users who lost funds to the investment product
Gemini Earn users lost their investment in the exchange's high yield investment product when the crypto exchange loaned the funds to Genesis Trading that loaned it to the Digital Currency Group (DCG).
DCG is expected to return the $630 million loan owed to the Genesis bankruptcy estate. If DCG defaults on its debt, Earn users are likely to be expected to wait longer for the mediation proceedings to complete, for a resolution.
Gemini update for Earn users
Why Earn users lost their investment in Gemini’s product
Gemini Earn is a high-risk high yield investment product where the exchange is not liable for defaults. Gemini Earn loaned $900 million to Genesis Trading, the OTC Bitcoin trading desk in exchange loaned the funds to the DCG Group.
The DCG Group couldn’t return the loan in full and Genesis Trading was forced to pause withdrawals. This meant Earn users were locked out of their investment until DCG pays back what it owes to the Genesis bankruptcy estate.
Gemini exchange is in no position liable to make Earn users whole as the investment product was marketed as “high risk” with all the terms and conditions laid down for users.
This makes the 30-day mediation that Gemini has proposed, key to Earn users. The outcome of the mediation and whether DCG Group returns the debt it owes to Genesis are the two issues that Earn users need to follow closely.
1/ Earn update: This past week, Genesis, Digital Currency Group (DCG), the Unsecured Creditors Committee (UCC), the Creditor Committee, and Gemini agreed to start a 30-day mediation process to drive to a final resolution as soon as possible.
— Gemini (@Gemini) April 30, 2023
Colin Wu, a Chinese journalist highlighted the importance of this week for Earn users in his recent tweet:
This week, Genesis, DCG, Creditors Committee and Gemini agreed to start a 30-day mediation process to drive to a final resolution as soon as possible. If DCG is unable to pay and/or restructure its debt of $630m on May 9th - 11th, DCG risks defaulting on its obligations.…
— Wu Blockchain (@WuBlockchain) May 1, 2023
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum dips slightly amid Renzo depeg, BlackRock spot ETH ETF amendment
Ethereum (ETH) suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH (ezETH) crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective (INJ) price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
US intensifies battle against crypto privacy protocols following crackdown on Samourai Wallet
CEO Keonne Rodriguez and CTO William Lonergan of Samourai Wallet were arrested by the US Department of Justice (DoJ) on Wednesday and charged with $100 million in money laundering on a count and illegal money transmitting on another count. This move could see privacy-focused cryptocurrencies take a dip.
Near Protocol Price Prediction: NEAR fulfills targets but a 10% correction may be on the horizon
Near Protocol price has completed a 55% mean reversal from the bottom of the market range at $4.27. Amid growing bearish activity, NEAR could drop 10% to the $6.00 psychological level before a potential recovery. A break and close above $7.95 would invalidate the downleg thesis.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?