Gemini crypto exchange has entered into a 30-day mediation process with bankrupt crypto broker Genesis and its parent company Digital Currency Group (DGC) to find a resolution for Gemini Earn users who lost their assets when the broker went under.
Court filings indicate that the firm owes more than $3.8 billion to its largest 50 creditors, including Gemini.
Genesis initially filed for bankruptcy in January.
Genesis and the exchange had collaborated to create Gemini’s Earn program, which allowed retail investors to loan out their digital assets to earn interest. Genesis owes about $765 million to members of the Earn program, the highest single amount it owes, according to the bankruptcy filings.
Gemini co-founder Cameron Winklevoss said earlier this year that over 340,000 users of the Earn program were affected by the liquidity challenges that hit Genesis beginning last year.
Says the crypto exchange in an update posted on Friday,
“The mediation will be narrowly focused on DCG’s economic contribution to the bankruptcy estate for the benefit of all creditors, including Earn users, and is designed to bring resolution to the Genesis bankruptcy plan.
The proposed mediation provides for two meetings before May 8th. This is an important date because on May 9th – 11th, DCG owes the Genesis bankruptcy estate $630 million (money that is due for the benefit of all creditors). If DCG is unable to pay and/or restructure its debt, DCG risks defaulting on its obligations. So while the mediation is scheduled for up to 30 days, the parties are expected to work expeditiously towards agreement in the immediate window.”
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