Gemini co-founder, Cameron Winklevoss, claims that the global investment bank Houlihan Lokey has devised a plan on behalf of a committee of creditors to resolve the liquidity problems of Genesis and its parent company, Digital Currency Group (DCG). According to Winklevoss, the resolution of the liquidity problems would allow Gemini clients to recover the assets owed to them by Genesis and DCG following the bankruptcy of FTX.
Earn Update: Today, Houlihan Lokey presented a plan on behalf of the Creditor Committee to resolve the liquidity issues at Genesis and DCG and provide a path for the recovery of assets.
— Cameron Winklevoss (@cameron) December 20, 2022
According to the statement titled “Earn Update” shared on Twitter by the co-founder of Gemini, the plan presented by Houlihan Lokey on behalf of the creditors’ committee “is based on information received from Genesis, DCG and their respective advisors to date.” Winklevoss added that “the creditors’ committee expects an initial response this week.”
In 2021, Winklevoss’ Gemini launched the “Earn” offering, an interest-earning program for US clients through a partnership with Genesis. It offered investors the opportunity to earn 8% interest by lending their cryptocurrencies, including Bitcoin (BTC) and stablecoins.
The platform put the show on hiatus on November 16, after being exposed to the FTX crash. That same day, his partner Genesis temporarily suspended withdrawals, citing “unprecedented market turmoil,” days after revealing that around $175 million of his funds were locked up in an FTX trading account.
On Dec. 3, Cointelegraph reported that cryptocurrency lender Genesis and DCG allegedly owed Gemini customers $900 million. The report was based on information from the Financial Times, which cited people familiar with the matter.
Gemini has laid off about 20% of its staff this year, and its problems appear to have been compounded by the collapse of FTX.
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