Crypto exchange Gemini warned DCG and Chief Executive Officer Barry Silbert, who failed to repay loans owed to the crypto exchange. The co-founder of Gemini, Cameron Winklevoss, said his company might sue Barry and DCG for failing to repay a loan lent to them.
Moreover, the Winklevoss brother’s crypto exchange is ready to file a claim against Genesis on returning around $1.1 billion in cryptocurrencies over 200k Earn users. A week earlier, attorneys of the DCG subsidiary filed a plea in the court requesting an extension to submit the Chapter-11 restructuring plan.
After certain losses, Genesis, a subsidiary of DCG, filed for Chapter-11 bankruptcy on January 20, 2023. According to available data, the SEC accused Gemini and Genesis of selling unregistered securities through their Earn program.
In April, creditors of Genesis informed that the company had around $1 billion to $10 billion in liabilities at the time of its bankruptcy filing. This report disrupted the bankruptcy proceedings and the “agreement in principle” between DCG and the firm. If the court agrees to grant an extension, Genesis must submit its restructuring plan until August 27.
Earn Program Responsible For Genesis and Gemini Tussle
According to court filings, Genesis and Gemini agreed to work collectively to offer its U.S. customers the opportunity to loan their crypto holdings to Genesis in exchange for high-interest returns.
The New York State Department of Financial Services investigates Gemini’s earnings program. According to an official statement, the Gemini subsidiary of DCG has refused to return users’ funds.
The crypto exchange officials said they are in close communication with DCG to conclude. It is important to note that if they fail to reach a conclusion, they will sue the company and its head.
Investments, Funding, and Acquisitions of Digital Currency Group
Data from Crunchbase states that DCG has raised over $1.3 billion in five different funding rounds. Some of the major investors of DCG are Bain Capital Ventures, Mastercard, SOFTBANK Latin America Ventures, SoftBank Vision Fund, and Eldridge.
Digital Currency Groups invested in more than 300 companies of crypto and traditional industries. Some recent company investments are Axoni, Coinflow Labs, Fleek, Anode Labs, React Network, Fordefi, Volare Finance, NFTBank, Arch, and Mural.
Other than investment, DCG acquired Luno, a global cryptocurrency company and a leading media outlet in the crypto industry. Grayscale Investment and crypto miner Foundry are some of the significant subsidiaries of DCG.
After the unprecedented demise of FTX, the entire crypto market and some of the companies associated with Sam Bankman-Fried’s exchange are still struggling. Likewise, BlockFi and some other companies followed the path of bankruptcy.
According to CoinMarketCap, the leader of all digital assets, Bitcoin has a market dominance of over 40%, and at press time, it was trading at $26,795 with a 24-hour trading volume of $9.67 billion.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/22/gemini-warns-dcg-and-ceo-of-filing-lawsuit-citing-loan-repayment/