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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.\u00a0<\/p>\n
\nEarn 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.<\/p>\n
\u2014 Cameron Winklevoss (@cameron) December 20, 2022<\/a><\/p><\/blockquote>\n
According to the brief \u201cEarn Update\u201d shared on Twitter by the Gemini co-founder, the plan presented by Houlihan Lokey on behalf of the creditor committee \u201cis based on information received from Genesis, DCG, and their respective advisors to date.\u201d Winklevoss added that \u201cThe Creditor Committee expects an initial response this week.\u201d<\/p>\n
In 2021, Winklevoss\u2019 Gemini crypto exchange launched the “Earn” offering<\/a>, 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<\/a>) and stablecoins.<\/p>\n
The crypto exchange paused the program on Nov. 16 after suffering exposure in the collapse of FTX. The same day, its partner Genesis\u00a0temporarily suspended withdrawals<\/a>, citing \u201cunprecedented market turmoil,\u201d days after disclosing that around $175 million<\/a>\u00a0of its funds were stuck in an FTX trading account.\u00a0<\/p>\n
Related:\u00a0Tether says it has no exposure to Genesis Global or Gemini Earn<\/a><\/em><\/strong><\/p>\n
On Dec. 3, Cointelegraph reported that crypto lender Genesis and DCG allegedly owed $900 million to Gemini\u2019s clients<\/a>. The report was based on information from the Financial Times, which cited people familiar with the matter.<\/p>\n
Gemini has laid off about\u00a020% of its staff this year<\/a>, and its issues appear to have been exacerbated by the collapse of FTX.\u00a0<\/p>\n<\/div>\n