- Gemini has previously warned that the digital assets giant might default on its commitments.
- Genesis, a division of DCG, had received $900 million from Gemini before it went bankrupt.
The Digital Currency Group (DCG) failed to repay $630M on a loan that was due to Gemini last week, as the exchange confirmed. Genesis, a division of Digital Currency Group, had received $900 million from Gemini before it went bankrupt.
The crypto firm controlled by the Winklevoss twins and other creditors is now debating whether or not to grant DCG a forbearance in order to prevent a default. Gemini has previously warned that the digital assets giant might default on its commitments if DCG was unable to make the minimum payment or restructure its debt.
Gemini Files Motion with Bankruptcy Court
The conversation went on to indicate that it may possibly submit an “amended plan of reorganisation.” DCG would not be involved in the proposal of this idea. Gemini has asked the court for more time to submit its proposal.
In the most recent revision. Gemini said that it has been getting ready to submit the Gemini Master Claim on May 22. The 232,000 Earn users who had active loans as of January 19, 2023 are owed more than $1.1 billion in digital assets, which Genesis has refused to repay.
Additionally, Gemini said that its legal counsel filed a motion with the Bankruptcy Court for the Southern District of New York last week requesting a 100-day extension of the deadline to file a Chapter 11 reorganization plan that “would have Gemini’s input if not outright support.”
If the court agrees, Gemini will have until October 26 to accept the plan and Genesis will have until August 27 to file it.
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