![]() ![]() The hearing is now scheduled for August 18th. Genesis adjourned the hearing on the adequacy of information in the Disclosure Statement and on the solicitation and the voting procedures with respect to Genesis’s Amended Plan for a 5th time. Such a plan will provide for the distribution of existing assets in the Genesis estate while concurrently allowing creditors to pursue litigation against DCG to recover any additional assets owed and not distributed from the estate. If a deal cannot be reached with DCG before August 16th, Genesis will proceed with a further amended version of the Amended Plan currently on file. With that said, Genesis’s counsel indicated that Genesis will not seek any further extensions of the mediation period. (DCG), the Unsecured Creditors Committee’s (UCC), and the Ad Hoc Group of Creditors (AHG) remain very close to a deal in principle, this is the same thing Genesis’s counsel said at the last mediation status conference on July 13th. And while Genesis’s counsel stated at the status conference that Genesis, Digital Currency Group, Inc. Gemini continues to advocate for disclosure of the final offers made in the mediation to allow all creditors to evaluate the proposals. įollowing a status conference on August 2nd, Judge Lane approved a 7th extension of the mediation period, to August 16th, over Gemini’s objection. The arguments in their motion are ridiculous and we share some more thoughts in this tweet thread. (DCG), the parent company of Genesis, and its CEO Barry Silbert, filed a motion to dismiss the lawsuit we filed against them for not only architecting and masterminding the DCG and Genesis fraud against creditors, including Earn users, but also directly and personally perpetrating it (see July 7th update, below). On August 10th, Digital Currency Group, Inc. Genesis’s motion seeking a second extension of its period of exclusivity to propose a plan of reorganization is also scheduled for hearing on September 6th (see August 4th update, below). ![]() The hearing is now scheduled for September 6th. Genesis adjourned the hearing on the adequacy of information in the Disclosure Statement and on the solicitation and the voting procedures with respect to Genesis’s Amended Plan for a 6th time. Genesis continues to have constructive conversations with creditors.As a reminder, the mediation ends next Wednesday on August 16th and Genesis has stated that it will not seek any further extensions. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. Ī representative for the company told Decrypt at the time: "We have no plans to file bankruptcy imminently. Yesterday, reports emerged that Genesis may be facing bankruptcy. Last week, Genesis unsuccessfully angled for a $1 billion bailout after the FTX crisis prompted a bank run on its lending arm.Ī Genesis document seen by the Wall Street Journal said: “There is an ongoing run on deposits driven mainly by retail programs and partners of Genesis (i.e., Gemini Earn) and institutional clients testing liquidity.” ![]() The company is still reeling from the implosion of Three Arrows Capital (3AC) earlier this year, saying the $2.3 billion owed by the ex-crypto hedge fund “ negatively impacted ” the liquidity of its lending business. The FTX disaster wasn’t the only hit Genesis took this crypto winter. Gemini’s announcement today was thin on details and thick with assurances, telling Earn customers that redemptions remain Gemini’s “ highest priority ,” that Genesis and DCG “remain committed to exploring every possible option,” and that all funds held on Gemini’s Exchange and Custody services are backed 1:1. Gemini’s Earn is tied to the fate of its lending partner, crypto prime broker Genesis, which, on the same day of Gemini’s announcement last week, said it was suspending all withdrawals due to the sudden, catastrophic collapse of the FTX exchange, which Genesis's derivatives business had $175 million exposure to. (DCG) to find a solution for Earn users to redeem their funds. 1/5 Update for Earn customers: we continue to work with Genesis Global Capital, LLC (Genesis) - the lending partner of Earn - and its parent company Digital Currency Group, Inc. ![]()
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