Gemini Creditor Commission Introduces Plan To Solve Liquidity Issue

According to reports, the Gemini Creditor Commission has formulated a plan to solve the liquidity problems at DCG (Digital Currency Group) and Genesis.

Gemini Creditor Commission Releases Asset Recovery Plan

Gemini co-founder, Cameron Winklevoss, posted a tweet recently stating that the company’s creditor committee has a plan. This plan would help users recover their assets from Genesis and DCG.

According to Cameron, the Committee developed the plan after acquiring info from both firms and their advisors. The co-founder added that the Committee expects a response before the end of the week.

Genesis and Gemini collaborated to introduce a service called Gemini Earn last February. The service promised users a 7.4% interest on all crypto investments.

However, the FTX crisis, which occurred last month, affected Genesis. Hence, the company had to stop all withdrawals from the Gemini Earn project.

Last month, Gemini exchange informed its clients that it would keep partnering with DCG and Genesis. The partnership aims to help users redeem their locked funds on Genesis.

On December 3rd, Ellis and Kirkland became legal counsels for the Committee. Additionally, Houlihan Lokey is now the Committee’s financial advisor. On December 17th, Gemini’s website stated that Lokey was working to resolve users’ funds issues.

According to the website, the plan was in the Alpha stages, with discussions between both parties.

Amanda Cowie Responds To The Gemini Earn Situation 

Meanwhile, the VP of Marketing and Communication at DCG, Amanda Cowie, commented on DCG’s actions following the FTX bankruptcy crisis. Cowie noted that the company had to respond to the increased market disruption caused by FTX’s collapse.

Meanwhile, last month’s increased tension in the crypto market forced several crypto investors to move their funds off exchanges. Hence, some platforms had to stop withdrawals to avoid going bankrupt.

In Cowie’s words, “the company took this step due to the high mistrust and disruption in the market after FTX’s collapse. Meanwhile, this decision affects the lending service at Genesis but does not affect crypto custody or trading.”

Cowie further said the stoppage of withdrawal on Gemini Earn does not affect DCG’s business operations. She added that it does not affect the company’s other subsidiaries.

According to reports, Genesis owed creditors about $1.8 billion. Out of this sum, Genesis owes Gemini about $900 million.

The co-founder of Gemini has once again reiterated the firm’s commitment to helping users recover their assets from the exchange. Meanwhile, Gemini users are not the only ones hoping they can recover their assets.

Users of the now-bankrupt FTX are uncertain if they will regain their assets. Since FTX’s collapse, several companies have written off their investment in FTX.

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