ChainCatcher news, Digital Currency Group (DCG) released a statement regarding the mediation motion submitted against Genesis, stating, "Two months after all parties agreed to the comprehensive settlement submitted by Genesis Capital to the bankruptcy court, some Genesis Capital creditors have rejected it and made new demands. Our understanding is that a portion of the creditors has decided to abandon the previous agreement, and it is unclear whether thousands of individual creditors are aware of this development, but the latest actions will prolong the court's proceedings."ChainCatcher previously reported that Digital Currency Group (DCG) reached a principle agreement with Genesis creditors (holding or representing over $2 billion in claims) in February, where DCG would exchange $1.1 billion in bonds maturing in 2032 for convertible preferred stock issued by DCG as part of Genesis's bankruptcy plan. DCG would also refinance its existing 2023 term loan with a new senior secured term loan to be paid to creditors in two tranches, totaling approximately $500 million. (source link)

According to ChainCatcher, The Block reported that the U.S. Securities and Exchange Commission (SEC) has charged Genesis Global Capital and Gemini Trust Company with offering and selling unregistered securities to retail investors through a crypto lending program.The SEC stated that Genesis entered into an agreement with Gemini in December 2020 and began offering the Gemini Earn program to retail investors in February 2021, allowing Gemini customers to earn interest by lending their cryptocurrency to Genesis. Gemini also deducted a commission fee from the returns paid to Gemini Earn investors by Genesis, sometimes as high as 4.29%. An SEC official stated that Genesis and Gemini participated in the issuance and sale of securities without registration, and both companies bear responsibility. (source link)

ChainCatcher news, Cameron Winklevoss, co-founder of the American cryptocurrency exchange Gemini, stated that the false statements made by DCG founder Barry Silbert and other key personnel misled everyone, leading parties to believe that Genesis had recovered from the losses of Three Arrows, thereby inducing lenders to continue providing loans. Cameron also believes that the $1.1 billion promissory note provided by DCG has not been genuinely honored, and the net present value of that note should be significantly discounted, with an actual value of only about $300 million.According to previous reports from ChainCatcher, DCG founder Barry Silbert today released a "Letter to Shareholders" in response to recent questions regarding DCG. Silbert stated that DCG did borrow funds from Genesis Capital, but these loans were always built on a fair trading basis and priced at current market rates. (Source link)