Gemini Earn Updates

The parties continue to work on drafting the PSA. Gemini continues to work with the Creditor Committee and the UCC to advocate on behalf of Earn users. Genesis financial statements were filed in the Genesis Bankruptcy proceeding this week. The next hearing is the Omnibus Hearing, which is scheduled for March 30th and will provide for a number of motions related to the furtherance of the case to be heard. Following that will be the Meeting of Creditors, which is scheduled for April 13th and will provide an opportunity for creditors to ask Genesis questions. The recently filed Genesis financial statements and information regarding the Omnibus Hearing and the Meeting of Creditors can be found here.

The parties continue to work on drafting the PSA. Gemini continues to work with the Creditor Committee and the UCC to advocate on behalf of Earn users.

The parties continue to work on drafting the PSA. The next hearing in the Genesis Bankruptcy proceeding is scheduled for this upcoming Wednesday, March 15th. As a reminder, we will continue to update this page every Friday until a resolution is reached. Returning your assets is our highest priority and we are operating with the utmost urgency.

The parties continue to work on drafting the PSA. The next hearing in the Genesis Bankruptcy proceeding is scheduled for Wednesday, March 15th.

The Creditor Committee, Genesis, and DCG are still in the process of drafting the Plan Support Agreement (PSA). The Unsecured Creditor Committee (UCC) is coming up to speed and will be reviewing PSA and and the Amended Plan of Reorganization. The UCC's purpose is to represent creditors and advocate on their behalf during the Chapter 11 process.

The Creditor Committee, Genesis, and DCG are in the process of drafting the Plan Support Agreement. The next hearing in the Genesis Bankruptcy proceeding is the Second Day Hearing, which is scheduled for Wednesday, February 22nd.

Today, Genesis filed a Term Sheet with the Bankruptcy Court that reflects the agreement in principle reached between Gemini, Genesis, DCG, and other creditors on a plan that provides a path for Earn users to recover their assets. [Term Sheet PDF]

The parties will now begin drafting the Plan Support Agreement (PSA), a binding agreement between the parties, and the Amended Plan of Reorganization. Once finalized, these documents will be submitted to the Court for approval. This process is expected to take 1-3 months. We expect distributions to begin shortly thereafter.

Important: Starting today, we will move from bi-weekly updates to weekly updates on every Friday to better reflect the cadence of information we expect to receive during the remainder of this process until final resolution is reached.

No material update.

Today, Gemini reached an agreement in principle with Genesis Global Capital, LLC (Genesis), Digital Currency Group, Inc. (DCG), and other creditors on a plan that provides a path for Earn users to recover their assets. This agreement was announced in Bankruptcy Court today. 

This plan is a critical step forward towards a substantial recovery of assets for all Genesis creditors. In addition, Gemini will be contributing up to $100 million more for Earn users as part of the plan, further demonstrating Gemini’s continued commitment to helping Earn users achieve a full recovery. 

We have been working around the clock since November 16, 2022 to reach this milestone. We greatly appreciate your support and patience during this time. It has allowed us to maximize our efforts on your behalf. There is still much work to be done to complete this process, including further due diligence of Genesis financials and judicial approval of this plan, but we are confident that we now have a framework in place to execute on. Thank you for putting your trust in us during this challenging time.

We will continue to update this page on how to participate in the recovery, key dates, information, and milestones as they unfold.

The UCC was selected today. The Creditor Committee, Genesis, and DCG continue to negotiate a global resolution in advance of the next Status Conference in the Genesis Bankruptcy proceeding, which will occur this Monday, February 6th.

The next Status Conference in the Genesis Bankruptcy proceeding will be held on Monday, February 6th. We expect the Unsecured Creditor Committee (UCC) to be selected this week. In the meantime, the Creditor Committee, Genesis, and DCG continue to negotiate a global resolution.

The Creditor Committee, Genesis, and DCG continue to negotiate a global resolution.

The Creditor Committee, Genesis, and DCG continue to negotiate a global resolution.

Yesterday, Genesis filed for bankruptcy under Chapter 11. This is a crucial step towards us being able to recover your assets. This tweet thread has more information. 

No material update.

Yesterday, the SEC filed an action against Gemini and Genesis. We are disappointed by this as it does nothing to further our efforts and help Earn users get their assets back. Nonetheless, we will not let this distract us from the important work we are doing to recover your assets. This tweet thread has more information.

An Open Letter to the Board of DCG, requesting the removal of Barry Silbert as CEO of DCG, was published today. It is now time for the Board to show him the door so that DCG can start working with creditors in earnest to find a resolution. [PDF]

Gemini also filed an Answer in court today in response to a Complaint. Gemini’s Answer contains additional information regarding the fraud that was committed by Barry Silbert, DCG, and Genesis. [PDF]

No material update.

An Open Letter to Barry Silbert, CEO of DCG, was published yesterday. Gemini has stated that Barry Silbert and DCG need to take responsibility for the money owed to Earn users and publicly commit to working together to solve this problem by January 8, 2023.

No material update.

We continued to work through the Christmas holiday towards a resolution. We expect a more fulsome update by the end of this week.

We continue to work with Genesis and DCG and are operating with the utmost urgency. All parties remain engaged and collaborative. We will continue to work on your behalf around the clock through the holidays — we will not be slowed down because of this.

Today, Houlihan Lokey presented a plan on behalf of the Creditor Committee to resolve the liquidity issues at Genesis and DCG and provide a path for the recovery of assets. This plan is based on information received from Genesis, DCG, and their respective advisors to date. The Creditor Committee expects an initial response this week.

Houlihan Lokey, the Financial Advisor of the Creditor Committee, has begun advocating for a plan to resolve the liquidity issues at Genesis and DCG and provide a path for the recovery of funds. It is still early stages, and discussions are ongoing, however, we'll update you as soon as more information is available.

No material update.

No material update.

Houlihan Lokey has been engaged as Financial Advisor on behalf of the Creditor Committee.

Earn Update page is launched.

Kirkland & Ellis has been engaged as counsel on behalf of the Creditor Committee.

Message sent to Earn users

On November 16, 2022, Genesis — the lending partner of the Earn program — paused withdrawals and messaged that they would not be able to meet Earn user redemption requests within the service-level agreement (SLA) of 5 business days. Gemini subsequently paused withdrawals on the Earn program. Blog post here.