Digital Currency Group (DCG), a prominent conglomerate of cryptocurrency-focused companies based in the United States, has unveiled a fresh plan to address the concerns of creditors affected by the bankruptcy of Genesis Global. This proposal holds the promise of substantial recoveries for those involved.
Aim for Substantial Recovery
The newly proposed plan, presented on September 13th, outlines a strategy designed to provide unsecured creditors with the opportunity for significant recovery. DCG aims to offer these creditors a remarkable 70-90% recovery, with a notable portion of the recovery being provided in digital currencies. This bold move reflects DCG’s commitment to ensuring that affected parties receive meaningful compensation for their losses.
Hope for Gemini Earn Users
Notably, the plan extends its reach to Gemini Earn users, presenting a potential recovery of approximately 95-110% of their funds. What sets this proposal apart is that it does not require any contribution from Gemini itself. However, DCG also suggests that if Gemini were willing to provide $100 million to Gemini Earn users, as they have previously done, the path to full recovery for these users would become even more assured.
A Positive Turn of Events
This marks the second agreement in principle submitted in the Genesis Global bankruptcy case. The earlier proposal from DCG had faced criticism from creditors who found it “wholly insufficient.” Additionally, Genesis had initiated legal action against DCG, citing defaulted loans amounting to around $600 million.
DCG’s latest proposal, offering substantial recovery prospects for unsecured creditors and Gemini Earn users, represents a significant step forward in resolving the Genesis Global bankruptcy case. The crypto community now watches with anticipation, hopeful for a positive resolution that can set a precedent for addressing similar challenges in the cryptocurrency industry.