Gemini accuses Digital Currency Group, the parent company of Genesis, of “gaslighting” with a proposed new arrangement for creditors.
This agreement, which was made public on Wednesday as part of Genesis’s bankruptcy proceedings, would provide a framework for creditors that would offer “all unsecured creditors a 70-90% recovery with a meaningful portion of the recovery in digital currencies,” according to DCG.
“Through the DCG Statement, DCG continues its campaign of contrived, misleading, and inaccurate assertions in an attempt to gaslight creditors of the Genesis estate generally, and the Gemini Lenders specifically, and escape responsibility for the harm it has caused them,” attorneys for Gemini said in a filing on Friday.
They referred to it as a “attempt to persuade the Gemini Lenders to accept a deal that would allow DCG to pay substantially less than it owes.”