Gemini Earn creditors are furious over a proposed restructuring plan that would effectively reduce promised Bitcoin (BTC) payouts to around 30% of their value at current market rates.
In a post by
Under the proposed plan, creditors would receive a payment equal to their cryptocurrency savings balance as of January 19, 2023, the date Gemini’s cryptocurrency lending partner Genesis Global Capital filed for bankruptcy.
Some observers, including Bloomberg exchange-traded fund analyst James Seyffart described the plan as “cruel” given the rise in the prices of Bitcoin and Ethereum.ETH) was only $20,940 and $1,545 at the time. The assets have since soared to $42,750 and $2,250 respectively at the time of this writing.
This can be cruel. This is understandably the worst-case scenario, but Gemini Earn users could potentially only earn 61% of their cryptocurrency’s value starting January 19, 2023. WOOF.
Even if it is 100%, it stings based on the current price. This is 61%-100% of:
Bitcoin $20,940
Ethereum $1,545 https://t.co/A6u28U3dsi pic.twitter.com/5SKZnlRjr9— James Seyff (@JSeyff) December 14, 2023
This means that in a worst-case scenario where the creditor receives a 61% recovery rate, each Bitcoin credited by the creditor would only receive $12,773, or 30% of the current Bitcoin value.
Many of the commenters on Gemini’s
#gemini #geminiearn
negative vote pic.twitter.com/hz3ZrvoxWY— jeffscottworld (️, ) (@jeffscottward) December 13, 2023
X user Andrew Aleid said: said: “I voted no because this is spitting in our face. “It is an absolute shame.”
“You stole our money. In response to Gemini Trust’s post, another user, Leslie, said every dollar should be returned. She added:
“How can your customers believe a word you say when you’ve been deceiving and lying to us for over a year?” Leslie’s comments were made in conjunction with reassuring clients that Gemini would not be subject to counterparty risk from Genesis.
BC, another X user, said everyone should pay back the full amount. “Anything less is unacceptable.”
After a year this is absolutely crazy. You killed our soul. You have damaged our hearts and health. We give you cryptocurrency coins and want to get your cryptocurrency back. Same amount. DCG forced them to do what they wanted. You couldn’t do anything!!! unbelievable
– Anna (@AvaAzadpour) December 14, 2023
Gemini Earn was a program that helped users gain interest in cryptocurrency. Gemini withdrew hundreds of millions of dollars from Genesis to facilitate its programs before Genesis went bankrupt.
The cryptocurrency exchange is now seeking to recoup $1.6 billion from Genesis for Earn users.
Related: New York Attorney General Sues Gemini, Genesis, DCG for Investor Fraud
Creditors have until 4:00 PM ET on January 10, 2024 to accept or reject Gemini’s plan.
If the plan is accepted, the rehabilitation court in charge of the case will decide whether to give final approval on February 14, 2024.
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