Gemini, a cryptocurrency exchange, has been in consideration for a forbearance option against Digital Currency Group (DCG). It’s believed that DCG couldn’t complete a $630 million repayment in the previous week, as stated by Cointelegraph.
According to Cointelegraph, Gemini stated that the forbearance choice would be taken into account based on DCG’s ability to negotiate a deal. In case a deal can’t be worked out, Gemini intends to approach DCG-based Genesis Capital for an amended way to reorganise.
Based on Cointelegraph’s information, on May 19, 2023, Genesis has also filed a motion with bankruptcy court aiming to expand its exclusivity timeline to propose such a plan. Reportedly, Gemini and DCG have been able to work out an “agreement in principle” with creditors, with creditors expected to receive 80% of the amount they lost due to the initial settlement agreement’s bankruptcy.
Moreover, Cointelegraph noted that Gemini has chalked a new “Gemini Master Claim,” which it aims to put into action by May 22, 2023. Sources suggest that the new plan aims to indemnify around 232,000 Gemini Earn users, who had active loans as of January 19, 2023, by paying them back $1.1 billion worth digital assets.
(With insights from Cointelegraph)
