last week,Genesis parent DCG defaults on $630 million in debt obligationsThe inability to resolve the loan has sparked concerns that DCG may default on the loan, which is now in custody of the Genesis bankruptcy estate.

Gemini is considering giving DCG some relief after the group failed to repay $630 million last week. In the context of this temporary arrangement, a deferment means that the borrower can reduce mortgage payments or temporarily stop payments.

However, it is important to note that the borrower is still responsible for paying the reduced or suspended amount. As part of the mediation process, Gemini initially gave DCG 30 days to secure sufficient funding.

In January, Gemini decided to shut down Earn after claiming that Genesis had not returned assets worth more than $900 million owed to the exchange. In its latest statement, Gemini said,Granting a forbearance period will depend in part on the DCG's willingness to engage in real negotiations on a mutually acceptable agreement。

If the parties concerned fail to reach a consensus, Gemini intends to work with DCG's Genesis Capital to propose a revised restructuring plan without DCG's approval.

Gemini said the consideration was based in part on whether the parties believed that DCG would negotiate in good faith a mutually agreed agreement.

Genesis has more than $3.5 billion in outstanding debt to its 50 major creditors, including Gemini, Cumberland, Mirana, MoonAlpha Finance and VanEck, according to court documents.

A full settlement was tabled in court in February after Genesis and DCG reached an "agreement in principle", and the original settlement was meant to give creditors 80% of the money they lost through bankruptcy.

Unfortunately, Genesis' creditors escalated their demands in the ensuing months, causing the original settlement plan to fall apart. By May 22, Gemini plans to file a new claim, dubbed the “Gemini Master Claim,” to recover more than $1.1 billion in digital assets.

As of January 19, 2023, Genesis has not returned these assets to the approximately 232,000 Gemini Earn users who hold active loans.And Gemini's new initiative will be independent and does not require DCG's consent or participation。