Gemini Opposes Genesis Bankruptcy Plan: 'Woefully Light on Specifics'

Gemini joins two other creditor groups in objecting to Genesis' proposed agreement to resolve its bankruptcy.

AccessTimeIconAug 30, 2023 at 9:43 p.m. UTC
Updated Aug 31, 2023 at 7:51 a.m. UTC
Drive the Crypto Policy Conversation Forward
October 24, 2023 • Convene • Washington D.C.Where the industry establishes the digital economy’s legal, regulatory and compliance best practices for the future.Register Now

Attorneys for crypto exchange Gemini argued that a proposed resolution for Genesis' bankruptcy doesn't have enough detail or provide any assurances for some of its largest debtors in a new filing Wednesday.

A set of ad hoc creditors, the Fair Deal Group, also filed an objection to the proposed plan on similar grounds, saying the proposed agreement would fail to secure all of the debts Genesis is owed and that Genesis has not demonstrated it would be able to "confirm a viable plan."

"On August 29, 2023, the Debtors revealed an 'agreement in principle' among the Debtors, the Committee, and DCG [Digital Currency Group] that is woefully light on specifics and remains subject to definitive documentation," the Gemini filing said. "The limited information provided by the Debtors makes clear that the proposed deal is also woefully light in economic consideration."

Genesis, which shares a parent company with CoinDesk in DCG, filed for bankruptcy in January. In its Aug. 29 filing, attorneys for the bankrupt lender said unsecured creditors could receive up to 90% of the U.S. dollar equivalent of their holdings, though full details were not shared.

Wednesday's filing follows another from a third group of creditors – the Ad Hoc Group of Genesis Lenders – who similarly argued that Digital Currency Group's role is "wholly insufficient to satisfy even the uncontested loan amounts due."

The three parties also called for an end to a special exclusivity period which allowed Genesis to negotiate terms for resolving its bankruptcy through mediations.

"Debtors have repeatedly promised that a plan that resolves claims against DCG is right around the corner, as they seek extension after extension of mediation periods, hearing dates, and bid deadlines," the Gemini filing said. The harm to Gemini is made worse, it added, as DCG has "not paid any of the approximately $630 million in loans that came due to the Debtors in May 2023."

Spokespeople for Genesis did not immediately return a request for comment.

Edited by Jesse Hamilton.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Nikhilesh De

Nikhilesh De is CoinDesk's managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.