In a recent court filing, Gemini has accused DCG of having a bankruptcy plan that aims to lure its creditors into an unfavorable agreement.
“DCG’s statement must be seen for what it is: DCG’s effort to entice Gemini’s creditors into accepting an agreement that allows DCG to pay much less than what they owe.”
Subsequently, the exchange also stated that it will pursue its opposition to DCG’s bankruptcy plan to ensure that the creditors receive the highest possible recovery for their lost assets.
“Gemini will continue to fight against DCG’s ‘starve them out’ approach to ensure that DCG pays a fair and full amount. Gemini’s creditors deserve more value from DCG and can get more than that.”
It is worth noting that Gemini has consistently maintained that DCG denies its “central role” in Genesis’s collapse and refuses to accept any responsibility.
Significantly, the exchange recently voiced its opposition to DCG’s bankruptcy plan. Specifically, on August 31st, Gemini argued that the bankruptcy plan is unclear and lacks important information for the creditors.
This happened after creditors hesitated to agree to the plan, with Gemini objecting due to the agreement’s lack of necessary details on how payments will be made to the creditors.
Previously, on July 7th, Gemini initiated legal action against DCG and its founder Barry Silbert. In the lawsuit, Gemini’s CEO, Cameron Winklevoss, alleged that Silbert engaged in fraudulent behavior toward the exchange.
Winklevoss detailed that when Gemini decided to halt its Earn program in October 2022, Silbert approached Gemini, attempting to persuade them to continue running the program, despite this leader knowing about Genesis’s severe insolvency.