<p class="p1"><span class="s1">Digital Currency Group and Genesis subsidiaries have reached an initial agreement on a restructuring plan with a group of the firm’s main creditors, according to <a href="https://www.coindesk.com/business/2023/02/06/bankrupt-lender-genesis-and-parent-dcg-reach-initial-agreement-with-main-creditors-source/"><span class="s2">CoinDesk</span></a>. </span></p> <p class="p1"><span class="s1">This comes after Genesis filed for bankruptcy protection <a href="https://www.theblock.co/post/190311/digital-currency-groups-genesis-global-files-for-bankruptcy-protection"><span class="s2">last month</span></a> after taking a financial hit following the collapses of crypto hedge fund Three Arrows Capital and exchange FTX last year. </span></p> <p class="p1"><span class="s1">The principal agreement includes winding down the Genesis loan book and also the sale of the bankrupt Genesis entities, according to a person familiar with the situation who spoke to CoinDesk. </span></p> <p class="p1"><span class="s1">A term sheet includes refinancing outstanding loans where Digital Currency Group borrowed $500 million in cash and about $100 million worth of bitcoin from Genesis. </span><span class="s1">The agreement will be solicited to other creditors, including customers of the Gemini Earn lending product, CoinDesk reported, citing the person familiar with the matter. </span></p> <p class="p1"><span class="s1">That lending product has caught the eye of regulators. The Securities and Exchange Commission charged both Gemini and Genesis last month with the unregistered offering and sale of securities through the Gemini Earn program.<span class="Apple-converted-space"> </span>That program, too, has been the subject of a <a href="https://www.theblock.co/post/198772/geminis-winklevoss-dcgs-silbert-spar-over-frozen-funds-on-genesis"><span class="s2">public feud</span></a> between Gemini co-founder Cameron Winklevoss and DCG head</span><span class="s3"> Barry Silbert. </span></p> <p class="p2"><span class="s1">Genesis Global Holdco <a href="https://www.theblock.co/post/204035/genesis-owes-more-than-3-6-billion-to-top-50-creditors"><span class="s4">owes more than $3.6 billion</span></a> to its top 50 creditors, including claims from the Gemini Trust Company. </span></p> <p class="p1"><span class="s1">Genesis did not respond to CoinDesk. DCG is CoinDesk's parent company. </span></p> <p class="p1"><span class="s1"> </span></p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>