Gemini Says Genesis Parent DCG Missed $630 Million Payment

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Digital Currency Group (DCG) missed a $630 million payment owed to Gemini last week.

Gemini CEO Cameron Winklevoss has threatened to sue DCG CEO Barry Silbert and DCG for repayment of a $900 million loan after Genesis, a DCG entity, filed for bankruptcy under the Chapter 11, amid allegations of mixed funds and ongoing loan repayment disputes, while the U.S. SEC accused the two companies of selling unregistered securities through their Earn program.

Genesis and CoinDesk are both owned by DCG.

While Gemini and DCG are in discussions, if no agreement is reached, Gemini and other parties are proposing a modified reorganization plan with Genesis that does not require DCG’s approval, Gemini said in an update on his website.

The review will be based in part on whether the parties believe DCG will engage in good faith negotiations on a consensual agreement, Gemini wrote.

A DCG spokesperson did not respond to a request for comment at the time of publication.

Gemini co-founder Cameron Winklevoss has publicly accused DCG CEO Barry Silbert of engaging in bad faith dropout tactics.

Meanwhile, Gemini is preparing to file a claim seeking the return of more than $1.1 billion in digital assets from Genesis for its more than 200,000 Earn users.

Late last week, Genesis attorneys filed a petition with the bankruptcy court for the Southern District of New York for an extension of their allowable time to file a Chapter 11 plan and seek acceptances.

If the court approves it, they will have until August 27 to file a plan and until October 26 for Gemini to accept it.

According to a January court filing, Genesis owes more than $3.5 billion to its top 50 creditors, including Gemini, Cumberland, Mirana, MoonAlpha Finance and VanEcks New Finance Income Fund.

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