The Gemini exchange will commit $100 million to a recovery and restructuring plan for its bankrupt partner, Genesis, as part of an agreement announced in Manhattan Bankruptcy Court.
Genesis, Gemini, Digital Currency Group (DCG) and Genesis lenders have entered into an agreement whereby $100 million in funds will be held on behalf of Gemini for the benefit of 340,000 Earn income program customers. Thus, Gemini intends to demonstrate its desire to return funds to affected users.
The joint recovery plan is largely based on the refinancing of DCG’s Genesis loans. In addition to the refinancing, DCG will provide Genesis creditors with all shares of the Genesis subsidiary, a two-tranche credit facility and convertible preferred shares.
DCG’s total contribution to the reorganization program for bankrupt crypto lender Genesis was about $500 million, according to Gemini’s legal team.
Earlier, Gemini announced the termination of the loan agreement with Genesis Global Capital (GGC) and the closure of the Earn program, accusing its management of defrauding users.
Source: Bits
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