Genesis and DCG creditor committee propose plan for asset recovery
Quick Take
- The firm representing the DCG and Genesis creditor committee proposed a plan for digital asset recovery.
- The move comes after weeks of Gemini attempting to resolve the liquidity crisis from Genesis and DGC that paused its yield program, Gemini Earn.
Houlihan Lokey, an investment and financial services firm, presented a liquidity resolution plan on behalf of the creditor committee for the crypto broker Genesis and its parent company, DCG.
Gemini co-founder Cameron Winklevoss took to Twitter to explain the path for asset recovery for Gemini Earn users. "This plan is based on information received from Genesis, DCG, and their respective advisors to date. The creditor committee expects an initial response this week," Winklevoss wrote.
The update comes in an attempt for the beleaguered firms to pay back Gemini Earn users, a program in which individuals lent out their digital assets and expected a yield. The program has been frozen since mid-November amid a liquidity crises from Genesis and DGC.
Gemini has been working with Genesis and DCG since Nov. 22 to help customers get their Earn redemptions. Genesis owes Gemini Earn users $900 million, The Block previously reported.
Gemini formed the creditor committee on Dec. 6 following the Gemini Earn freeze, and Houlihan Lokey has been the financial advisor to the creditor committee since Dec. 9.
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