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Gemini Earn creditors are fuming over a proposed reorganization plan that could see their promised Bitcoin (BTC) payouts effectively slashed to about 30% of what they\u2019re worth at current market rates. <\/p>\n
In a post on X (formerly Twitter), Gemini Trust revealed it sent creditors an email on Dec. 13 outlining the proposed plan, which has now been put up for a vote. <\/p>\n
Under the proposed plan, creditors will receive a payout equal to their Earn crypto balances as of Jan. 19, 2023 \u2014 the date that Gemini\u2019s cryptocurrency lending partner Genesis Global Capital filed for bankruptcy.<\/p>\n
Some observers, including <\/strong>Bloomberg exchange-traded fund analyst James Seyffart, described the plan as \u201cbrutal,\u201d given that the prices of Bitcoin and Ether (ETH) were only $20,940 and $1,545 at the time. The assets have since rallied to $42,750 and $2,250, respectively, at the time of writing.<\/p>\n This could be brutal. Granted seems to be worst case scenario but Gemini Earn users could be getting potentially just 61% of the value of their crypto from Jan 19, 2023. WOOF. <\/p>\n Even at 100% it stings based on current prices. Thats 61%-100% of:<\/p>\n Bitcoin $20,940 \u2014 James Seyffart (@JSeyff) December 14, 2023<\/a><\/p><\/blockquote>\n This would mean that in the worst-case scenario where creditors are given a 61% recovery, each Bitcoin that a creditor had on Earn would only be given $12,773, or 30% of what a Bitcoin is worth today. <\/p>\n Commenters of Gemini\u2019s X post appeared in fierce opposition to the plan, with many of them urging creditors to \u201cVOTE NO.\u201d<\/p>\n #gemini<\/a> #geminiearn<\/a> \u2014 jeffscottworld (\ufe0f, ) (@jeffscottward) December 13, 2023<\/a><\/p><\/blockquote>\n\n
Ethereum $1,545 https:\/\/t.co\/A6u28U3dsi pic.twitter.com\/5SKZnlRjr9<\/a><\/p>\n\n
VOTE NO pic.twitter.com\/hz3ZrvoxWY<\/a><\/p>\n