Gemini accuses Genesis of manipulating the voting process in FTX settlement

Gemini opposes both the DCG agreement and the FTX settlement


ADragan/Shutterstock modified by Blockworks


Gemini accused Genesis of manipulating the voting process for its proposed settlement with FTX after opposing its plan with DCG.

“The Debtors cannot convince their actual creditors to support their unconfirmable Amended Plan currently on file, so they have turned to the estate of the industry’s largest fraud for a friendly vote,” Gemini’s lawyers wrote.

Gemini is not alone in its opposition. The Fair Deal Group, which is a group of unsecured creditors, also filed a joinder late Thursday opposing the FTX settlement. They claim it is being forced on the creditors despite the opposition.

“The Debtors do not have the support of a single class, and plainly will need to buy some votes. Hence, the Proposed Settlement,” the Fair Deal Group wrote.

FTX and Alameda would be able to claim $175 million from the Genesis estate as part of the deal, a much lower figure than the $4 billion initially sought.

Both Gemini and the Fair Deal Group submitted their filings after the Ad Hoc Group of Genesis Lenders filed an objection to the bankrupt lenders plan with FTX, claiming that the FTX debtors “inflated” its claims.

Gemini filed an objection on Wednesday to the agreement in principle that was reached by Genesis and DCG, claiming that it was “woefully light on specifics and remains subject to definitive documentation” and that a plan incorporating the agreement would be a “dead end.”

“It requires DCG to contribute to the Debtors’ estates significantly less than what DCG currently owes, while providing DCG with releases of valuable estate claims against DCG,” lawyers continued. 

Both DCG and Genesis announced a preliminary agreement in the Chapter 11 plan for the former on Monday. DCG, under the plan, would clear its existing debts, which include a past-due unsecured loan of around $630 million — due back in May of this year — and a $1.1 billion promissory note expiring in 2032.

The repayment plan would see $328 million due in two years, and another segment of $830 million due in seven years.

Gemini and DCG — including CEO Barry Silbert and the Winklevoss twins — are currently going head-to-head in a lawsuit, after both Gemini and the Winklevoss twins accused DCG and Silbert of engaging “in a fraudulent scheme to induce a variety of depositors, including Gemini users.”

DCG, earlier this month, filed a motion to dismiss the lawsuit, claiming that the suit is rife with “misrepresentations.”

Neither Genesis nor its counsel immediately responded to requests for comment.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Templates.png


ZKPs enable efficient offchain transaction processing and validation, resulting in increased throughput and reduced fees. Solana's ZK Compression leverages ZKPs to minimize onchain storage costs, while Sui's zkLogin streamlines user onboarding by replacing complex key management with familiar OAuth credentials.


The crypto asset manager lowered its planned fee from 0.25% to 0.15%, undercutting its competitors


Plus, a look at planned ETH ETF fees and how they differ from their BTC counterparts


North Korea suspected in breach of Indian exchange’s multisig wallet


Plus, Sanctum’s CLOUD token has officially launched — but not without problems


It’s not yet clear whether Donald Trump is pumping bitcoin. But an unofficial memecoin is still seeing benefit.