The co-founder of Gemini, Cameron Winklevoss, shared in an replace on Twitter that world funding financial institution Houlihan Lokey had devised a plan on behalf of the creditor committee to resolve the liquidity issues at Genesis and its dad or mum firm Digital Currency Group (DCG). According to Winklevoss, resolving the liquidity issues would offer a path for Gemini purchasers to get better assets owed to them by Genesis and DCG following the FTX collapse. 

Earn Update: Today, Houlihan Lokey offered a plan on behalf of the Creditor Committee to resolve the liquidity issues at Genesis and DCG and present a path for the recovery of assets.

— Cameron Winklevoss (@cameron) December 20, 2022

According to the temporary “Earn Update” shared by the Gemini co-founder, the plan offered 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 trade launched the “Earn” providing, an interest-earning program for prospects in the United States via a partnership with Genesis. It provided buyers the alternative to earn 8% in curiosity by lending out their crypto, which included Bitcoin (BTC) and stablecoins pegged to fiat currencies.

The crypto trade paused the program on Nov. 16 after struggling publicity in the FTX collapse. The similar day, its companion Genesis quickly suspended withdrawals, citing “unprecedented market turmoil,” days after disclosing round $175 million price of funds caught in an FTX buying and selling account. 

Related: Tether says it has no publicity to Genesis Global or Gemini Earn

On Dec. 3, Cointelegraph reported that crypto lender Genesis and its dad or mum firm Digital Currency Group allegedly owed $900 million to Gemini’s purchasers. The report was based mostly on info from the Financial Times, which cited folks acquainted with the matter.

Gemini has laid off about 20% of its workers this yr, and its issues seem to have been exacerbated by the collapse of FTX. 


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