Gemini Trust Challenges DCG’s Recovery Plan in Genesis Bankruptcy Case

Gemini Trust Challenges DCG’s Recovery Plan in Genesis Bankruptcy Case

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Key Insights:

  • Gemini Trust questions DCG’s optimistic recovery rates in Genesis’ bankruptcy.
  • The dispute adds to the complexity of the crypto exchange Gemini, DCG, and Genesis conflict.
  • With billions at stake, the outcome remains uncertain for all major parties involved.

In the continuing bankruptcy case of Genesis Global, legal representatives of Gemini Trust have raised concerns regarding Digital Currency Group (DCG)’s recovery plan. On Sept. 15, they submitted a detailed objection at the United States Bankruptcy Court for the Southern District of New York, pointing to possible inaccuracies in DCG’s claims.

DCG’s Recovery Plan Under Scrutiny

The contention primarily revolves around DCG’s submission from Sept. 13. This plan suggested a potential recovery of “70–90%” for unsecured creditors, with a significant part in digital currencies. It further stated that Gemini Earn users could anticipate a “95–110%” recovery.

Gemini’s legal representatives, however, view these figures with skepticism. They suggest that DCG’s proposed numbers might need to reflect the potential outcome. The Sept. 15 filing indicates a belief that DCG might aim to resolve the issue for less than the amount owed. They highlight the necessity for DCG to reevaluate the loan conditions given to Genesis.


The document underscores the perception that DCG’s projected recovery rates might differ from what they appear. The implication is that Gemini Lenders could receive considerably less than the proposed figures based on the current terms.

The Wider Picture

This legal dispute is a chapter in an ongoing conflict involving the cryptocurrency exchange Gemini, DCG, and the Gemini Earn program. The program, which received funding from Genesis, faced challenges when Genesis suspended withdrawals in November 2022. The decision came after market challenges that emerged alongside FTX’s downfall. This led to Genesis filing for bankruptcy in January 2023.

Court documents indicate that at the time of its Chapter 11 filing, Genesis had outstanding debts of over $3.5 billion to its 50 largest creditors. Gemini filed a claim in May to recover more than $1.1 billion in assets for close to 232,000 Earn users. Subsequently, they began legal proceedings against DCG and its CEO, Barry Silbert, in June, citing misconduct allegations.

The narrative surrounding Barry Silbert includes claims that he played a central role in the issues between DCG and Genesis. Cameron Winklevoss, a Gemini co-founder, has noted Silbert’s alleged direct involvement.

Adding to the complexity, the U.S. Securities and Exchange Commission filed a suit against Gemini and Genesis in January. This action centered on allegations of selling unregistered securities through the Earn initiative. Both companies sought to dismiss the case in May, and the matter remains unresolved.

With multiple layers of claims and responses, the bankruptcy situation surrounding Genesis presents a challenging landscape, with the outcomes still uncertain for all involved parties.

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Christopher Craig
About Author

Christopher Craig

Christopher Craig, a crypto literary savant, masterfully deciphers the intricate world of blockchain. Blending astute analysis with a clear narrative, Christopher's articles offer readers a lucid understanding of digital currencies. As the crypto sector expands, his erudite insights continue to guide both novices and seasoned enthusiasts

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