Digital Currency Group Misses $630M Payout to US Crypto Exchange

Cameron Winklevoss, co-founder of trading platform Gemini, has announced that Digital Currency Group (DCG, the parent company of Genesis) is behind on its $630 million debt payment to compensate users of its Gemini Earn.

As a result, the parties are now considering the possibility of delaying the debt to avoid company default. If the terms of the previously agreed deal are not met, Gemini has proposed a restructuring plan that does not require approval by DCG.

Additionally, the crypto exchange has also filed a lawsuit to demand an immediate refund of $1.1 billion from Genesis and its top 50 creditors for the 232,000 affected Earn users.

A 30-day pre-trial reconciliation process was launched in February 2023 in an attempt to find a solution to the proposed Genesis agreement, in which creditors will be able to receive 80% of their lost funds, this to be done in a gradual process that includes the zeroing of Genesis’ loan portfolio and the sale of insolvent structures.