Gemini offers a recovery plan, Angers creditors

Gemini, the Winklevoss twins' crypto platform for exchange, custodial services and – in partnership with Genesis – find services, has been in a bit of trouble since it filed for bankruptcy last January.

A possible recovery plan pending court approval

The legal troubles stemmed in part from unpaid loans to parent company DGG, and Genesis eventually agreed to a payment plan with that firm, allowing it to pay off creditors — including Gemini, given its defaulting nature. The relationship between the two.

Genesis currently owes Gemini a total of $1.6 billion. Because of this, Gemini was able to reach out to its users yesterday, giving them an opportunity to exit the platform, where the community will have to vote.

“Consumers will soon receive an email with a link to the Genesis inquiry package, including specific instructions on how to vote on the plan and a disclosure statement. The Bankruptcy Court found that the disclosure statement contains sufficient information to enable consumers to make an informed judgment about the plan.”

Get an update: Request for Genesis Reorganization Plan (PLAN) launched today. Entrants were sent an email including specific instructions on how to vote on the plan and a disclosure statement linking to the Genesis Questionnaire Package.

Last day of election…

— GeminiTrustCo (@GeminiTrustCo) December 13, 2023

If the vote is completed, all Gemini users – those who invested less than $250, who were not initially compensated – will receive an amount equal to the value of their accumulated crypto on the exchange on January 19, 2022. Genesis first went belly up.

However, the e-mail to lenders gives no warning about the elephant in the room – which is glaringly obvious to the Gemini community, which has embraced X and voiced their anger at the proposal.

Many plans to choose a number

The reason for the anger over the proposed payment plan is that in January 2022, crypto prices were very low. At the time, one ETH was going for $1,545, and one BTC was $21k.

How can any of your customers believe a word you say when they lied and cheated us for over a year (you know, knowing the Earn program was at risk of crashing and sending emails to customers saying everything was ok when it wasn't ok). Maybe 61%? Maybe 100%? Should I vote on this? How is this? You stole our money. Give it all back, every dollar.

The vast majority of Gemini users on X echoed the sentiment above, with Bloomberg analyst Seifert also speaking out loud to outline the exact amount users could lose if the plan goes through.

This can be cruel. It's true that it sounds like a worst case scenario, but Gemini Income users may be getting only 61% of their crypto worth as of January 19, 2023. WOOF.

Even 100% is based on the current price. This ranges from 61-100%.

Bitcoin $20,940 Ethereum $1,545 pic.twitter.com/5SKZnlRjr9

— James Seyff (@JSeyff) December 14, 2023

Currently, one BTC is worth about $42.8k, and 1 ETH is selling for $2,272, according to CoinGecko.

As a result, this fee will be much less if Gemini users practice self-protection of their assets than if they do nothing. To add insult to injury, the proposal does not return any promised benefits generated to users who deposit their crypto on the Gemini platform.