Gemini Earn creditors are expressing frustration over a proposed reorganization plan that could significantly reduce their expected Bitcoin payouts. The plan, outlined in an email sent by Gemini Trust on December 13, suggests that creditors will receive a payout equal to their Earn crypto balances as of January 19, 2023, the date when Genesis Global Capital filed for bankruptcy. However, given the current market rates, this would effectively slash the value of their payouts to about 30% of what they are worth.

Many observers, including Bloomberg exchange-traded fund analyst James Seyffart, have described the plan as “brutal” considering the substantial increase in the price of Bitcoin and Ether since the bankruptcy filing. Commenters on Gemini’s post have urged creditors to vote against the proposed plan, expressing their dissatisfaction and demanding a full repayment.

Gemini Earn was a program that allowed users to earn interest in cryptocurrencies. The exchange withdrew a significant amount of money from Genesis to support the program before Genesis went bankrupt. Now, Gemini is seeking to recover $1.6 billion from Genesis on behalf of Earn users.

Creditors have until January 10, 2024, to accept or reject Gemini’s plan, and the bankruptcy court overseeing the case will make the final decision on February 14, 2024.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	Global
Countries
Sentiment	very negative
Relevance Score	1
People	James Seyffart, ANNA, Ian Malcolm, BC, Andrew Aleid
Companies	New York Attorney General, Gemini Trust, DCG, bankruptcy court, Genesis Global Capital
Currencies	Lido Staked Ether, Bitcoin
Securities	None