Genesis and DCG seek path for the recovery of assets amid liquidity issues
The co-founder of Gemini, Cameron Winklevoss, shared in an update on Twitter that global investment bank Houlihan Lokey had devised a plan on behalf of the creditor committee 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 FTX collapse.
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.
According to the brief “Earn Update” shared 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, which included Bitcoin (BTC) and stablecoins pegged to fiat currencies.
The crypto exchange paused the program on Nov. 16 after suffering exposure in the FTX collapse. The same day, its partner Genesis temporarily suspended withdrawals, citing “unprecedented market turmoil,” days after disclosing around $175 million worth of funds 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 its parent company Digital Currency
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