- Crypto exchange Gemini has agreed to enter a month-long meditation period to reach a final resolution.
- The mediation will see participation from Genesis and its Unsecured Creditors Committee as well as parent firm DCG.
- Gemini has also taken issue with the current pace of progress concerning Genesis’ restructuring process.
Gemini has agreed to start a 30-day mediation process with Genesis and the Digital Currency Group (DCG). The process will also see participation from Genesis’ Unsecured Creditors Committee (UCC), as well as an ad hoc Creditors Committee, formed and led by Gemini Exchange. The mediation process aims to reach a final resolution as soon as possible.
In an update shared by Gemini on Twitter earlier today, the Winklevoss-owned crypto exchange revealed that it agreed to enter the mediation period with bankrupt crypto firm Genesis in the interest of a quick resolution regarding the hundreds of millions of dollars owed to its Earn users.
1/ Earn update: This past week, Genesis, Digital Currency Group (DCG), the Unsecured Creditors Committee (UCC), the Creditor Committee, and Gemini agreed to start a 30-day mediation process to drive to a final resolution as soon as possible.— Gemini (@Gemini) April 30, 2023
According to Gemini’s update, Bankruptcy judge Sean Lane is expected to issue an order today directing the mediation process. “The mediation will be narrowly focused on DCG’s economic contribution to the bankruptcy estate for the benefit of all creditors, including Earn users, and is designed to bring resolution to the Genesis bankruptcy plan,” the update read.
The proposed mediation process lays out two meetings before May 8, 2023. This is a significant date given that on May 9 and 11, two loans owed to Genesis by its parent firm DCG are set to mature. The loans will provide a combined $630 million to the bankruptcy estate of Genesis, which will benefit all of its creditors including Gemini which happens to be the largest creditor.
Gemini has stated that if DCG fails to pay or restructure its debt to its subsidiary, it will risk defaulting on its obligations. To that end, all parties involved in the mediation process are expected to work expeditiously towards agreement as soon as the period starts, despite it being a month-long process.
Gemini has stated that it is largely in support of the mediation process and that it looks forward to working with all parties to reach a final resolution. The exchange has also gone on record to express its frustration with the current pace of progress and emphasized the need for urgency.
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