Gemini founder Cameron Winklevoss said global investment bank Houlihan Lokey had drawn up plans on behalf of a committee of creditors to resolve liquidity problems at Genesis and its parent company, Digital Currency Group (DCG). According to Winklevoss, resolving the liquidity issue will pave the way for Gemini clients to recover assets owed by Genesis and DCG following the collapse of FTX.
Get an Update: Today, Houlihan Lokey presented a plan on behalf of the Committee of Creditors to resolve liquidity issues at Genesis and DCG and pave the way for asset recovery.
— Cameron Winklevoss (@cameron) December 20, 2022
According to a summary of “Get Updates” shared on Twitter by the founder of Gemini, the plan presented by Houlihan Lokey on behalf of the committee of creditors “is based on the information received from Genesis, DCG, and their respective advisors to date.” Winklevoss added that “the Creditors’ Committee expects a response early this week.”
In 2021, Gemini Winklevoss crypto exchange launches “Get” offering., an interest-earning program for customers in the United States through a partnership with Genesis. It offers investors the opportunity to earn 8% interest by lending crypto, including Bitcoin (BTC) and stablecoins.
The crypto exchange paused its program on November 16 after suffering exposure to the collapse of FTX. Same day, Genesis partner the withdrawal is temporarily suspendeddeclared “unprecedented market turmoil,” the day after disclosing which is around $175 million of the funds are stuck in the FTX trading account.
On December 3, Cointelegraph reported that the crypto lender Genesis and DCG allegedly owe $900 million to Gemini clients. The report is based on information from the Financial Times, which cited people familiar with the matter.
Gemini has laid off about 20% of employees this yearand the problem appears to have been exacerbated by the collapse of FTX.