Gemini, a digital asset exchange, has accused Digital Currency Group (DCG) of deceptive practices to avoid fulfilling its complete obligations towards creditors of Genesis, its crypto lending unit. In July, Gemini filed a lawsuit against DCG after Genesis went bankrupt and failed to pay $735 million in assets to users of Gemini Earn.

DCG proposed an agreement to unsecured creditors

On September 13th, DCG proposed an agreement to unsecured creditors, including Gemini Earn users, to recover a significant portion of their funds.

“The transactions described in the Proposed Agreement would provide, based on the Debtors’ estimates, unsecured creditors a 70-90% recovery with a meaningful portion of the recovery in digital currencies…Notably, Gemini Earn users are estimated to recover approximately 95%-110% of their claims.”

Gemini filed a court document on Wednesday, claiming that DCG’s recovery rates proposal is at best misleading and at worst deceptive. According to Gemini, the proposed deal will not offer actual value to Gemini Lenders.

On the other hand, Genesis argues that DCG is shortchanging Gemini Lenders by allowing the firm to pay less than what it owes.

Genesis also accuses DCG of making misleading and inaccurate statements while trying to escape responsibility for causing harm to creditors of the Genesis estate, especially Gemini Lenders.

Genesis believes that receiving a fractional share of interest and principal payments over seven years from a risky counterparty is not equivalent to receiving the actual cash and digital assets owed today by Genesis to the Gemini Lenders.

Gemini in the news

Back in June, we revealed the fact that the major American crypto exchange is announcing a new expansion into one of the world’s biggest market regions.

In an announcement, crypto exchange Gemini says it is expanding into the Asia Pacific (APAC) region in addition to growing their engineering base in India.

“We’re expanding in the Asia Pacific region!

Our Singapore office will serve as a hub for our larger APAC operations and we plan to increase our headcount to 100+ in Singapore.”

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