Gemini Seeks $1.1B as DCG Misses $630M Payment

• Gemini is considering filing a motion with the court to recover $1.1 billion of digital assets from DCG-owned Genesis after DCG defaulted on a $630 million payment last week.
• Gemini is also considering granting forbearance to DCG if an agreement cannot be reached between the parties.
• The repayment saga originated when Genesis filed for Chapter 11 bankruptcy in January and owed over $3.5 billion to its top 50 creditors, including Gemini and Cumberland.

Troubled Cryptocurrency Exchange Gemini Seeks Forbearance

Gemini, a troubled cryptocurrency exchange, has considered the option of forbearance against Digital Currency Group (DCG) after it missed a $630 million payment last week. If an agreement cannot be reached between both parties, Gemini plans to file a motion with the court seeking the return of $1.1 billion of digital assets from DCG-owned Genesis.

Background Information on the Saga

The repayment saga began when Genesis filed for Chapter 11 bankruptcy in January and owes over $3.5 billion to its top 50 creditors, including Gemini and Cumberland. In February, co-founder Cameron Winklevoss threatened legal action against DCG and its CEO Barry Silbert over the loan repayment amounting up to $900 million dollars. A settlement was agreed upon in principle by all involved parties but had since stalled due to demands being increased by creditors such as Gemini, Mirana, MoonAlpha Finance and VanEck’s New Finance Income Fund shortly after submitting full settlement documents in February 2021.

Forbearance Consideration

In response, Gemini has looked into granting forbearance which allows borrowers to temporarily reduce or pause payments until further negotiations are carried out between all involved parties; however this will depend on whether DCG will engage in good faith negotiations or not towards an amicable deal concerning their debt obligations towards them or not.

Motion Filed by Genesis Capital

Genesis Capital has also filed a motion with the bankruptcy court seeking an extension of its exclusivity period so they can suggest terms for an amended plan of reorganization that could be advanced without requiring consent from DCG itself . This proposal would ensure that at least 80% of what creditors have lost due to the bankruptcy can be recovered under the initial settlement agreement set forth by all involved parties earlier this year before things took a turn for worse earlier this month..

Conclusion

To conclude, despite having been met with some opposition along its course, it appears that there are still several avenues for resolution available where all involved parties may stand something beneficial out of this ordeal; however only time will tell how far these solutions may take us in terms of economic recovery throughout 2021 and beyond..