Gemini co-founder Cameron Winklevoss said global investment bank Houlihan Lokey is working to solve liquidity problems in the stock market.

Gemini co-founder Cameron Winklevoss said global investment bank Houlihan Lokey, on behalf of a creditors’ committee, devised a plan to address liquidity issues at Genesis and its parent Digital Currency Group (DCG). ). According to Winklevoss, fixing the liquidity issues would allow Gemini clients to recoup assets Genesis and DCG owed them after FTX collapsed.

According to the brief “earn update” shared on Twitter by the Gemini co-founder, the plan presented by Houlihan Lokey on behalf of the creditors’ committee “is based on information we have received to date from Genesis, DCG and their respective advisors.” . Winklevoss added that “the creditors’ committee expects an initial response this week.”

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In 2021, Winklevoss crypto exchange Gemini launched the Earn offering, an interest-generating program for clients in the United States through a partnership with Genesis. It offered investors an opportunity to earn 8% interest by lending their crypto, including Bitcoin
Bitcoin

ticker below
$16,664

and stablecoins.

The crypto exchange halted the program on Nov. 16 after being exposed to the collapse of FTX. On the same day, his partner Genesis temporarily suspended payouts, days after it was revealed that around $175 million of his funds were locked in an FTX trading account, citing “unprecedented market turbulence.”

Related: Tether says it has no exposure to Genesis Global or Gemini Earn

On Dec. 3, Cointelegraph reported that crypto lender Genesis and DCG allegedly owed $900 million to Gemini clients. The report was based on information from the Financial Times, which quoted people familiar with the matter.

Gemini has laid off around 20% of its workforce this year, and its woes appear to have been compounded by FTX’s collapse.

Source: CoinTelegraph

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