The co-founder of Gemini, Cameron Winklevoss, says that global investment bank Houlihan Lokey has devised a plan on behalf of a committee of creditors to resolve the liquidity issues at Genesis and its parent company, Digital Currency Group (DCG). According to Winklevoss, resolving the liquidity issues would provide a path for Gemini clients to recover assets owed to them by Genesis and DCG following the collapse of FTX.
Earn Update: Today, Houlihan Lokey presented a plan on behalf of the Creditor Committee to resolve the liquidity issues at Genesis and DCG and provide a path for the recovery of assets.
— Cameron Winklevoss (@cameron) December 20, 2022
According to the brief “Earn Update” shared on Twitter by the Gemini co-founder, the plan presented by Houlihan Lokey on behalf of the creditor committee “is based on information received from Genesis, DCG, and their respective advisors to date.” Winklevoss added that “The Creditor Committee expects an initial response this week.”
In 2021, Winklevoss’ Gemini crypto exchange launched the “Earn” offering, an interest-earning program for customers in the United States through a partnership with Genesis. It offered investors the opportunity to earn 8% in interest by lending out their crypto, including Bitcoin (BTC) and stablecoins.
The crypto exchange paused the program on Nov. 16 after suffering exposure in the collapse of FTX. The same day, its partner Genesis temporarily suspended withdrawals, citing “unprecedented market turmoil,” days after disclosing that around $175 million of its funds were stuck in an FTX trading account.
Related: Tether says it has no exposure to Genesis Global or Gemini Earn
On Dec. 3, Cointelegraph reported that crypto lender Genesis and DCG allegedly owed $900 million to Gemini’s clients. The report was based on information from the Financial Times, which cited people familiar with the matter.
Gemini has laid off about 20% of its staff this year, and its issues appear to have been exacerbated by the collapse of FTX.
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Tagged: crypto blog, Crypto news, Winklevoss shared that the Creditor Committee expects an initial response this week.