Gemini creditors are facing a challenging situation with a proposed reorganization plan that could result in them recovering only a fraction of their original investments in Bitcoin. The plan, if accepted, could see creditors receiving just 30% of the current market value of their Bitcoin holdings or 61% of the value from January 19, 2023. This has sparked significant opposition among creditors who are unhappy with the substantial reduction in the value of their assets compared to current market rates.

The reorganization plan is related to the bankruptcy of Genesis Global Capital, a partner of Gemini Earn, a crypto lending program. Genesis’ bankruptcy led to the suspension of withdrawals from Gemini Earn, leaving many investors unable to access their funds. Both Gemini and Genesis are daughter companies of Digital Currency Group (DCG), and both companies have sued each other.

Gemini has been critical of a bankruptcy recovery plan related to Genesis, describing it as “misleading at best.” The plan would see Gemini creditors receiving only a portion of the money they are owed. The dispute revolves around the recovery of funds from a lending program that has been ongoing for several months.

However, there is a potential solution on the horizon. Genesis, DCG, and the primary creditors, including Gemini creditors, have agreed on a restructuring plan in principle. This plan could involve the sale of Genesis or the turnover of its equity to creditors. As part of this agreement, Gemini will contribute up to $100 million to compensate Earn users with frozen assets. The plan is a critical step towards recovering for Gemini Earn users, but it still needs approval from the bankruptcy court.

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

Information	Details
Geography	Global
Countries
Sentiment	negative
Relevance Score	1
People	James Seyffart
Companies	Gemini, Bloomberg, Digital Currency Group (DCG), bankruptcy court, Genesis Global Capital
Currencies	Bitcoin
Securities	None