Kenne Michael 
Gemini
Primarily, the objection focuses on the lack of exhaustive details and guarantees provided for prominent debtors in Genesis’ plan. Two additional specialized creditor groups have expressed comparable concerns.
In a recent legal filing, Gemini representatives emphasized that the proposed resolution lacked substantial specifics despite being designated as an “agreement in principle” between Genesis, the Commission, and Digital Currency Group (DCG).
The ongoing commitment to resolve DCG’s claims by extending mediation, delaying hearings, and extending bid deadlines has raised questions about fulfilling these promises.
Previously, DCG and Genesis’ creditors had reached a preliminary agreement. Genesis filed for Chapter 11 bankruptcy earlier this year due to a liquidity crisis caused by the collapse of the FTX cryptocurrency exchange.
According to the parent company of Genesis, DCG, the cryptocurrency lender is saddled with $630 million in unsecured loans and a $1.1 billion promissory note due in 2032.
The proposed agreement, in principle, contemplates DCG coordinating new debt facilities and a repayment plan, including a $328.8 million first-lien facility with a 2-year maturity and a $830 million second-lien facility with a 7-year maturity.
DCG’s strategy outlines four payments to creditors totaling $275 million to generate returns ranging from 70% to 90% for unsecured creditors in U.S. dollars and a recovery range of 65% to 90% based on the denomination of digital assets.
