Gemini Earn Creditors Facing Drastic Cuts
In a surprising turn of events, Gemini Earn creditors find themselves embroiled in a contentious battle over a proposed reorganization plan that threatens to decimate their expected Bitcoin payouts. This development has left many users seething with frustration and uncertainty about their investments.
The Controversial Plan
Gemini Trust, in a recent announcement on X (formerly Twitter), disclosed that it had sent an email to creditors on December 13th, outlining a proposed reorganization plan. Under this plan, creditors will receive payouts equivalent to their Earn crypto balances as of January 19, 2023—the date on which Gemini’s lending partner, Genesis Global Capital, filed for bankruptcy.
The Harsh Reality
At the time of Genesis’s bankruptcy filing, Bitcoin and Ether were valued at a mere $20,940 and $1,545, respectively. Since then, cryptocurrency markets have seen significant growth, with Bitcoin and Ether prices surging to $42,750 and $2,250, respectively, at the time of writing. Consequently, if the proposed plan is implemented, creditors may only recover 61% of their funds, with each Bitcoin payout reduced to a mere $12,773—a meager 30% of its current market value.
Outrage and Opposition
Gemini’s X post has ignited a firestorm of opposition from affected creditors. Many have vehemently expressed their discontent, with calls for a resounding “NO” vote on the proposed plan. Users, such as Andrew Aleid, have labeled it a “spit in our faces” and an “absolute disgrace.” The sentiment among Gemini Earn users is one of betrayal, with claims that their trust in the platform has been shattered due to prolonged deception.
Demands for Full Compensation
Amidst the uproar, users like Leslie have demanded that Gemini return “every single dollar” that was invested. Another user, BC, echoed this sentiment, asserting that anything less than full compensation is unacceptable.
Genesis of the Issue
Gemini Earn was a program that allowed users to earn interest in cryptocurrencies. The exchange had withdrawn substantial funds from Genesis to support this program before Genesis’s bankruptcy. Now, Gemini is on a quest to recover $1.6 billion from Genesis Global Capital on behalf of Earn program users.
The Decision Looms
Creditors have until January 10, 2024, at 4 pm Eastern Time to accept or reject Gemini’s proposed plan. If accepted, the bankruptcy court overseeing the case will make its final decision on February 14, 2024. The fate of Gemini Earn creditors hangs in the balance, as they anxiously await the outcome of this pivotal vote.
In conclusion, the proposed reorganization plan has thrown Gemini Earn creditors into turmoil, sparking a revolt against what they perceive as an unjust and punitive measure. The cryptocurrency community watches with bated breath as this saga unfolds, uncertain of the ultimate resolution and its implications for the world of digital assets.