US-based investment and financial services company Houlihan Lokey has offered a solution on behalf of creditors for the liquidity crisis experienced by the crypto commission startup Genesis and parent company DCG, which is on the verge of bankruptcy. Cameron Winklevoss, the co-founder of Gemini, which is among the 10 largest cryptocurrency exchanges, made a statement on how to save the assets of Gemini Earn users in his post on his Twitter account.
“Earn Update: Today, Houlihan Lokey presented a plan on behalf of the Creditor Committee to resolve the liquidity issues at Genesis and DCG and provide a path for the recovery of assets.”
Winklevoss underlined that he obtained this critical information from important sources. According to the Gemini co-founder, the creditor committee will receive an initial response this week.
The giant exchange set up a creditors committee on December 6 after the Gemini Earn system was disrupted by Genesis. According to unofficial information, Genesis owes $900 million to Gemini Earn users. Genesis, on the other hand, has a loan of $1.6 billion from its parent company DCG.
Digital Currency Group (DCG) is also the parent company of Grayscale, which manages GBTC, the largest Bitcoin futures fund traded on the equity markets. The problem caused by Genesis also causes great pressure on Grayscale’s BTC fund. For this reason, it is extremely important to solve the problems in order to calm the uneasiness in the market.