Genesis And DCG Creditor Committee Waiting For Feedback On New Proposal To Solve Liquidity Issues

Key Point:

• A new proposal for Genesis and DCG’s liquidity problem solution has been launched.
• The Creditors Committee expects to receive a preliminary response from the troubled crypto company this week.

In a recent announcement, the CEO of Gemini said that a solution to Genesis and DCG’ liquidity problems has been launched. Currently, the creditor committee is waiting for an answer from these crypto companies.

Houlihan Lokey, on behalf of the creditor committee, proposed a plan to address Genesis and DCG’s liquidity problems and provide a roadmap to asset recovery.

Reportedly, the plan is based on information received to date from Genesis, DCG and their respective advisors. The Creditor Committee expects an initial response this week.

As was updated in a previous Coincu News article, Loans by Genesis Creditor Groups, one of DCG’s subsidiaries, amounted to $1.8 billion and are continuing to grow. One of its biggest creditors is the Winklevoss brothers’ crypto company Gemini, which took in $900 million after Genesis’ lender halted customer withdrawals on November 16.

Genesis said it has begun discussions with its largest potential investors, creditors and borrowers, including Gemini and DCG, to agree on a solution to support the company’s lending business in terms of overall liquidity and meeting customer needs.

On December 6, Cameron Winklevoss said Gemini and other creditors have formed a creditor committee to work together to resolve the issue. Returning money to customers is the company’s top priority.

The plans are still in the early stages of being implemented, all information will be updated in detail on the website that has been created to update the situation in the most transparent way for the solution finding process for all users Earn Money in exchange for their property.

It can be said that DCG is one of the leading investment funds in the crypto industry. As of November 2021, they have made over 200 investments in various crypto companies. However, the fallout from FTX’s collapse took its toll on the Genesis subsidiary because of its large exposure. This is the name that is receiving the most attention because it is on the verge of bankruptcy.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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