The innovative strategy proposed by Gemini, a cryptocurrency exchange co-founded by Cameron and Tyler Winklevoss, entails certain creditors providing upfront funds to other creditors in exchange for a larger share of the potential litigation gains from DCG, the exchange’s opponent in an ongoing dispute. Gemini’s projected repayments could potentially reach $2.8 billion from the Genesis bankruptcy. The exchange has initiated proceedings in an attempt to extract further resource from DCG to settle its tangled web of sizeable debts, running into thousands of millions of dollars.
Background to the potential exploitation of DCG includes the already disputed February restructuring plan agreed between the Committee, DCG and debtors. Proving insufficient according to Gemini, the lack of definitive documentations and absences of essential allowances and guarantess, brought in the decision for Gemini to amend its strategy against DCG.
If the renowned capitalists rally fellow creditors behind their proposal to expedite repayments via payments up front, they stand to gain from greater potential proceeds in the wake of their crusade against DCG and the alleged fraudulent happenings it is in part responsible for.
