Genesis and DCG seek asset recovery amid financial concerns.
Rebeca Moen Dec 22, 2022 00:10
Cameron Winklevoss, co-founder of Gemini, claims Houlihan Lokey is fixing liquidity difficulties. FTX's failure may have worsened Gemini's 20% personnel layoffs this year. Gemini started its US interest-earning program "Earn" in 2021.
Cameron Winklevoss, a co-founder of Gemini, claims that the global investment bank Houlihan Lokey has developed a strategy to address the liquidity concerns that have been plaguing Genesis and its parent company, Digital Currency Group. Winklevoss's claim is based on the fact that Houlihan Lokey has developed a strategy to address the liquidity concerns that have been plaguing Genesis. This proposal was produced on behalf of a group that represents creditors (DCG).
Winklevoss asserts that addressing the liquidity difficulties would make it feasible for Gemini clients to reclaim assets that were owed to them by Genesis and DCG as a result of FTX's insolvency. This would be the case, according to Winklevoss, after the liquidity concerns were resolved.
According to a brief "Earn Update" that was posted on Twitter by the co-founder of Gemini, the proposal that was made by Houlihan Lokey on behalf of the creditor committee "is based on information gathered from Genesis, DCG, and their respective counsel to date."
In addition, Mr. Winklevoss said that "The Creditor Committee anticipated an early answer this week."
In 2021, the "Earn" product was brought to the market by the Winklevoss brothers' Gemini cryptocurrency exchange. Consumers in the United States had access to this service, which allowed them to earn interest and was made possible via a partnership with Genesis.
It gave investors the opportunity to earn an interest rate of 8% by lending out their cryptocurrency, which included Bitcoin and stablecoins, and it provided this opportunity to investors.
The cryptocurrency exchange halted all trading activities on November 16, after the exposure it received in the failure of FTX the previous day.
On the exact same day, its partner Genesis placed a temporary hold on withdrawals, citing extraordinary market turbulence as the reason. This happened only a few days after the corporation announced that around 175 million dollars of their funds were locked away in an FTX trading account.
Gemini has let off around twenty percent of its workers this year; the troubles at the firm appear to have been made worse by the failure of FTX.
