Last month, Genesis Global Capital stopped client withdrawals, casting doubt on its parent company, Digital Currency Group (DCG).
As it is known, Digital Currency Group, bitcoin It is also the parent company of Grayscale, which offers GBTC, a financial product of great importance for the company.
With Genesis stopping customer withdrawals cryptocurrency exchange Gemini, the customer on Gemini Earn, which is the yield product of the exchange, had to stop the withdrawals. The company still has not opened withdrawals.
Gemini CEO Winklevoss: We Started Talks with Genesis and DCG to Recover Funds
However, Gemini CEO Cameron Winklevoss made a new announcement on the subject on Twitter. Winklevoss reported that they are working on a new plan to resolve liquidity issues on Genesis and DCG and recover funds from these companies:
Winklevoss made the following statement on the subject:
“Earn Update: Houlihan Lokey, Financial Adviser to the Committee of Creditors, began negotiating a plan that would resolve liquidity issues at Genesis and DCG and provide a way to recover funds.
Talks are still at an early stage and are ongoing, but we will keep you informed as soon as more information becomes available.”
Earn Update: Houlihan Lokey, the Financial Advisor of the Creditor Committee, has begun advocating for a plan to resolve the liquidity issues at Genesis and DCG and provide a path for the recovery of funds.https://t.co/PoRA7WsY4S
— Cameron Winklevoss (@cameron) December 17, 2022
It was revealed that Digital Currency Group owed $1.6 billion to its subsidiary, Genesis.
However, cryptocurrency exchange Gemini states that if Genesis goes bankrupt, people who have invested in the Genesis Earn program on the platform may lose at least some of these assets.
*Not investment advice.
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