In a recent update shared by crypto exchange Gemini, it was revealed that Barry Silbert’s Digital Currency Group (DCG) missed a $630 million payment to its subsidiary Genesis Global Capital earlier this month.
Genesis filed for bankruptcy protection in January. Gemini, a major creditor to Genesis, stated that it’s actively collaborating with Genesis and other creditor groups and considering to provide forbearance and avoid a default situation.
“Consideration will be based in part on whether the parties believe DCG will engage in good faith negotiations on a consensual deal,” Gemini’s update read.
- The total amount owed by DCG’s Genesis to Gemini stands at $900 million.
- Earlier in May, Gemini warned that DCG was at risk of default if a $630 million debt payment was not made to Genesis’s bankruptcy estate.
- Gemini founder Cameron Winklevoss accused DCG of engaging in “bad faith stall tactics” and threatened to pursue legal action against Silbert and DCG.
In the latest update, Gemini stated that if a mutually agreeable deal cannot be reached, it will work with Genesis to propose terms for an amended plan of reorganization that doesn’t require DCG’s consent. To this end, Gemini has filed a motion with the bankruptcy court “to extend its period of exclusivity to propose such a plan.”
As of a May 9 update from DCG, the firm is actively in discussions with “capital providers for growth capital and to refinance its outstanding inter company obligations with Genesis.”
Gemini’s update further announced that it will file a claim on Monday seeking the return of $1.1 billion in crypto for its 232,000 Earn users that had loans with Genesis, which it says Genesis has refused to return.