Digital Currency Group, parent company of bankrupt crypto lender Genesis Global, said users of Gemini Trust’s Earn program can expect 95% to 110% recovery of their claims against Genesis under a recently announced financial framework, WSJ Pro Bankruptcy reported. Customers of crypto exchange Gemini’s Earn program lent Genesis nearly $1 billion before the latter filed for bankruptcy in January following the failure of crypto exchange FTX. Genesis said last month that under the proposed framework, its customers could receive estimated recoveries of between 70% to 90%. But DCG said the rate of recovery for more than 232,000 users of Gemini’s Earn program would be even better because Genesis had posted about 30.9 million shares of DCG-owned investment firm Grayscale Bitcoin Trust as collateral to secure borrowings from Gemini Earn users, according to its filing Wednesday with the U.S. Bankruptcy Court in White Plains, N.Y. The value of the collateral — which is now held by Gemini — has more than doubled to $607.6 million from $284.3 million in the past several months, giving an edge to Gemini Earn users over the rest of Genesis creditors, according to DCG.
