Will “Gemini Earn” Users Get Their Money Back?
Gemini co-founder Cameron Winklevoss on Friday said the firm will continue with its decision to take legal action against Digital Currency Group, founder Barry Silbert, and others accountable for Gemini’s harm. Genesis Trading’s lending business Genesis Global Capital filed for Chapter 11 bankruptcy in the Southern District of New York.
Winklevoss says Gemini will use every tool available in the bankruptcy court to maximize recovery for Earn users and any other parties within the bankruptcy court’s jurisdiction.
Gemini’s Cameron Winklevoss on Recovering Customer Assets
Cameron Winklevoss, co-founder of crypto exchange Gemini, in a series of tweets on January 20 revealed that they have moved closer to recovering customer funds. Genesis Global Capital, the lending arm of Genesis Global Trading, has filed for Chapter 11 bankruptcy in the Southern District of New York.
He claimed it is good news for Gemini as protection of the bankruptcy court will make Genesis subject to judicial oversight. Also, Genesis will be required to provide detail about schemes and internal matters that impacted Gemini Earn program and prevented customers to withdraw their funds.
Cameron Winklevoss also disclosed that Gemini will continue its legal action against Barry Silbert, DCG, and others despite Genesis Global filing for bankruptcy protection. He argued that Barry Silbert and DCG, the parent company of Genesis, continue to refuse to offer creditors a fair deal.
“Crucially, the decision to put Genesis into bankruptcy does not insulate Barry, DCG, and any other wrongdoers from accountability.”
Gemini is preparing a direct legal action for the fraud that caused harm to the 340,000+ Earn users and others. He urges Barry Silbert and DCG to make a fair offer to creditors in order to prevent a lawsuit against them. Moreover, Cameron Winklevoss asserts Genesis, DCG, and Barry Silbert owe an explanation and the bankruptcy court provides much-needed scope.
“This marks an important milestone in our efforts to help Earn users get their assets back. Doing so remains our highest priority.”
Genesis Largest Creditors
Genesis’ negotiations with the creditors have failed as parties didn’t agree with Genesis’ offers. As per court filing, the largest creditors include Gemini with 765 million, Bybit’s Mirana with 151 million, Babel Finance with 150 million, Coincident Capital with 110 million, and 50 other largest unsecured claims.
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