Crypto exchange Gemini and lending firm Genesis have reached a $100 million agreement regarding the Earn program.
Genesis will exchange its existing $1.1 billion note due in 2023 for convertible preferred stock to be issued by Digital Currency Group (DCG) as part of Genesis’ bankruptcy plan.
Gemini will contribute up to $100 million in additional funds to Earn users. The agreement aims to offer a better outcome for clients and stakeholders involved in the incident and will provide updates on the matter until a resolution is reached.
Despite the agreement, both Gemini and Genesis face challenges, with Gemini facing legal trouble from the SEC for an unregistered offering and sale of securities, an investigation by the New York Department of Financial Services, and a class action lawsuit. Gemini has also laid off 10% of its workforce.