Genesis Chapter 11 Bankruptcy Plan Voting Deadline Is January 10

Key Points:

• Earn users must decide on the Genesis Chapter 11 bankruptcy plan by January 10, 2024.
• Gemini aims to retain higher payouts for lending program creditors, sparking controversy among users.

The Gemini Trust announced the commencement of voting on the Genesis Chapter 11 bankruptcy plan this week. 

Voting Deadline Approaches for Genesis Chapter 11 Bankruptcy Plan

Gemini Earn users, who previously faced a proposed 61% crypto asset recovery plan, were sent specific instructions via email on how to participate in the vote. The deadline for users to accept or reject the Genesis Chapter 11 bankruptcy plan is set for January 10, 2024, at 4 p.m. EST.

In response to the proposed reorganization plan, which could potentially reduce payouts for lending program creditors by nearly 40% below current market rates, Gemini plans to oppose Genesis‘ motion next week. This motion aims to dismiss certain claims filed by Gemini in an ongoing lawsuit seeking to recover $1.6 billion in value for Earn users.

Controversy Surrounds in Crypto Asset Payouts

Earn users who expressed frustration over the proposed 61% recovery plan received the Genesis Solicitation Package, featuring the Disclosure Statement, which the Bankruptcy Court deemed to contain adequate information for informed decision-making. The Disclosure Statement, comprising a summary of the Genesis Chapter 11 bankruptcy plan‘s terms and risk factors, is crucial for users to review before casting their votes.

Gemini’s unveiling of the reorganization plan has stirred controversy among Earn users, who allege deceit and criticize the potential slashing of real fiat payouts to approximately 30% of current market values based on the January 19, 2023, bankruptcy filing rates. As the voting period unfolds, stakeholders are encouraged to carefully assess the Disclosure Statement and its exhibits before making their decisions on the proposed plan.

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