Digital Currency Group (DCG) seeks repayment plan for creditors

Digital Currency Group (DCG), the parent company of insolvent cryptocurrency lender Genesis, is seeking a repayment plan for its creditors, which include participants in Gemini Trust Co.’s Earn program.

In a filing on Wednesday, September 12, DCG assured Gemini Earn investors that they will likely receive full compensation, equal to or even exceeding their initial investment.

Partial payment in Bitcoin and Ethereum

Partial payment will be made in Bitcoin (BTC) and Ethereum (ETH).

Improved recovery for Genesis’ unsecured creditors

The filing also indicates that Genesis’ other unsecured creditors could recover between 70% and 90% of their investments, which represents a significant improvement over the expected payments to customers of other insolvent crypto services such as Voyager Digital and BlockFi Inc.

Ongoing efforts to gain support from creditors

This proposal comes as part of an ongoing effort to gain support from Earn Program investors and other Genesis creditors.

Skepticism from Gemini Trust Co.

There were skepticism from Gemini Trust Co., which rejected the proposed repayment plan earlier this month.

Gemini noted that there is no concrete evidence to guarantee that Earn users will recover between 70% and 90% of their investment.

Moreover, DCG’s proposal received limited support from Genesis’ creditors.

DCG opposed Gemini Trust Co.’s position. By noting that the interests of Gemini and its founders, Tyler and Cameron Winklevoss, may not fully align with the interests of Earn Program participants.

Lawsuit filed by the SEC

The Earn program, a joint effort between Genesis and Gemini, initially promised customers around 8% interest on their digital asset holdings.

However, this initiative is currently entangled in a lawsuit filed by the US Securities and Exchange Commission (SEC), claiming that it constitutes an unauthorized offering of securities.

Genesis and Gemini have strongly refuted these claims.