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Gemini Fights For Its Earn Users; Will They Get Their Money Back?

Author: Sohrab Khawas

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    • Genesis Global has officially filed for bankruptcy

    • Gemini provides an important update to its Earn program users.

    Gemini Earn customers who lost billions owing to its partner firm Genesis are still holding out hope of getting their money back as the crypto lender files for bankruptcy. Cameron Winklevoss, one of the founders of Gemini, has provided an update to the investors, assuring them that the company is still fighting on their behalf.

    Winklevoss provides reassurance- but is it enough?

    According to Winklevoss, Genesis’s bankruptcy filing is an essential step toward being able to retrieve the assets owned by Earn users. The billionaire stated that if Genesis files for bankruptcy, the company will be subject to judicial scrutiny and will be obliged to submit discovery regarding how the company arrived at this position in its financial situation. Despite this, DCG, its founder Barry Silbert, and any other individuals who committed wrongdoing are still subject to accountability.

    Cameron said:

    “We have been preparing to take direct legal action against Barry, DCG, and others who share responsibility for the fraud that has caused harm to the 340,000+ Earn users and others duped by Genesis and its accomplices.”

    Cameron recommends DCG make a reasonable offer to creditors to avoid a lawsuit from Gemini, which is contemplating direct legal action for the fraud that harmed the Earn users and others. He feels the company has an obligation to Gemini to explain itself, and that the bankruptcy court provides the necessary context for this.

    Gemini Plans to Restructure

    According to Genesis’s bankruptcy filing, Gemini is one of their 100,000 creditors. The cryptocurrency lender also stated in the petition that it anticipates sufficient funds would be generated through the restructuring process to compensate unsecured creditors, who are at risk of being completely wiped out in bankruptcy proceedings.

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