According to DCG, Gemini Earn could potentially recover up to 110% of its claim against bankrupt crypto lender Genesis.

Gemini Earn users could potentially recover up to 110% of their claims against now-bankrupt crypto lender Genesis, according to a newly proposed creditor agreement plan filed by Digital Currency Group (DCG) on Sept. 13.

According to the filing, the proposed agreement would provide Genesis’ “unsecured creditors with 70-90% of their claims, a significant portion of which would be in digital currency,” while Gemini Earn users are expected to receive approximately 95-110% of their claims.

“DCG provides creditors with the opportunity to gain cryptocurrency appreciation up to $85,000 for BTC and $8,500 for ETH, representing over $1.2 billion in additional potential value or over 100% potential upside appreciation.”

DCG said its projected recovery for Gemini Earn users is based on the premise that the exchange may not “contribute a penny to provide a better recovery for Gemini Earn users.” According to the cryptocurrency investment firm, if Gemini can “walk the talk” and contribute the $100 million it previously promised, then its Earn users “will undoubtedly receive more than a full recovery.”

Gemini Earn, an interest-bearing product on the exchange, has been at the center of problems since Genesis filed for bankruptcy. The exchange has taken extensive legal action against the lender’s parent company DCG on behalf of its more than 200,000 Earn users, claiming that it knew the lender had been bankrupt since 2022 but failed to inform investors.

Earlier this month, Gemini rejected a proposed settlement between bankrupt crypto platforms FTX and Genesis, calling it a “sweetheart pre-planned agreement” designed to benefit only DCG at the expense of other creditors. #DCG  #Gemini