{"id":50179,"date":"2023-05-22T07:26:37","date_gmt":"2023-05-22T11:26:37","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=50179"},"modified":"2023-05-22T07:26:39","modified_gmt":"2023-05-22T11:26:39","slug":"gemini-considers-forbearance-following-dcgs-delay-in-payment","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/gemini-considers-forbearance-following-dcgs-delay-in-payment\/","title":{"rendered":"Gemini Considers Forbearance Following DCG’s Delay in Payment"},"content":{"rendered":"\n

Crypto exchange Gemini is considering forbearance against its debtor Digital Currency Group <\/a>(DCG) after the latter defaulted on a $630M debt payment. <\/p>\n\n\n\n

\"Gemini
Gemini Considers Forbearance Following DCG's Delay in Payment<\/figcaption><\/figure>\n\n\n\n

Gemini is contemplating a forbearance option against Digital Currency Group (DCG), which missed a $630 million repayment payment last week.<\/p>\n\n\n\n

When a lender grants forbearance, the consumer can temporarily reduce or suspend mortgage payments. The creditor must pay the reduced or stopped payments in the future.<\/p>\n\n\n\n

In its revised response, Gemini asserted that the forbearance consideration would partly depend on whether DCG will negotiate a consensual agreement in good faith. <\/p>\n\n\n\n

Gemini intends to collaborate with DCG-owned Genesis Capital<\/a> to propose terms for an amended plan of reorganization that could be advanced without DCG's consent if an agreement cannot be reached among the involved parties.<\/p>\n\n\n\n

On May 19, Genesis also filed a motion with the bankruptcy court requesting an extension of its exclusive period to propose such a plan.<\/p>\n\n\n\n

The Gemini-DCG repayment saga began on January 19, when Genesis filed for Chapter 11 bankruptcy\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>. Cameron Winklevoss, the co-founder of Gemini, threatened to sue DCG and its CEO Barry Silbert in February over a $900 million loan repayment.<\/p>\n\n\n\n

\n

4\/ Crucially, the decision to put Genesis into bankruptcy does not insulate Barry, DCG, and any other wrongdoers from accountability.<\/p>— Cameron Winklevoss (@cameron) January 20, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

According to a court filing, Genesis owes over $3.5 billion to its top 50 creditors, including Gemini, Cumberland, Mirana, MoonAlpha Finance, and VanEck's New Finance Income Fund. Since its inception, the Genesis settlement process has been marred by controversy.<\/p>\n\n\n\n

Genesis and DCG reached an “agreement in principle” with creditors, and in February, Genesis submitted a comprehensive settlement to the bankruptcy court. <\/p>\n\n\n\n

Under the initial resolution agreement, creditors were to recover 80% of the funds they had lost due to the bankruptcy. <\/p>\n\n\n\n

A few months later, creditors of Genesis increased their demands, derailing the initial settlement plans.<\/p>\n\n\n\n

Gemini has drafted a new “Gemini Master Claim,” which the exchange intends to submit by May 22. <\/p>\n\n\n\n

Genesis has failed to return over $1.1 billion in digital assets<\/a> to approximately 232,000 Gemini Earn users who had active loans as of January 19, 2023, according to the new master plan.<\/p>\n","protected":false},"excerpt":{"rendered":"

Crypto exchange Gemini is considering forbearance against its debtor Digital Currency Group (DCG) after the latter defaulted on a $630M debt payment. Gemini is contemplating a forbearance option against Digital Currency Group (DCG), which missed a $630 million repayment payment last week. When a lender grants forbearance, the consumer can temporarily reduce or suspend mortgage […]<\/p>\n","protected":false},"author":12,"featured_media":19061,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32],"tags":[1406,13047,1276,4662],"class_list":["post-50179","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-exchange-news","tag-crypto-exchange","tag-dcg-2","tag-gemini","tag-genesis"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/02\/image-330.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/50179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=50179"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/50179\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/19061"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=50179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=50179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=50179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}