By: Isha Das
According to a reorganization plan shared by the exchange, Gemini Earn users may only recover between 61% to 100% of the value of their pending Earn balance as of January 19, 2023. This value estimation comes from Genesis, a defunct crypto lending company that worked with Gemini.
Gemini Earn users are unhappy about the prospect, with the plan facing widespread criticism. Unconfirmed users have hinted at the intricacy of the 374-page plan document, which many might find hard to understand. Further, there's a suggestion that the promised recovery of 61% could actually translate to a return of only 30.5% of assets, after considering other factors within the plan. The recovery is expected to be in form of the original digital assets loaned to Genesis. However, if paid in fiat currency, the users could potentially receive significantly less.
If agreed upon, there would be an initial distribution of Genesis' assets to Earn users while legal actions against Genesis continue, seeking the recovery of $1.6 billion. Rejection of the plan could lead Genesis to consider alternative strategies, possibly delaying distributions by several months. Users are required to vote on the plan before January 10, 2024.
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