DCG and Genesis branches agree on a restructuring plan: CoinDesk

Quick Take

  • Digital Currency Group and Genesis subsidiaries reached an agreement with a group of the firm’s main creditors, according to reporting from CoinDesk.
  • Genesis Global Holdco owes more than $3.6 billion to its top 50 creditors. 

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 CoinDesk

This comes after Genesis filed for bankruptcy protection last month after taking a financial hit following the collapses of crypto hedge fund Three Arrows Capital and exchange FTX last year.  

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. 

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. 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. 

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.  That program,  too, has been the subject of a public feud between Gemini co-founder Cameron Winklevoss and DCG head Barry Silbert.  

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Genesis Global Holdco owes more than $3.6 billion to its top 50 creditors, including claims from the Gemini Trust Company.  

Genesis did not respond to CoinDesk. DCG is CoinDesk's parent company.  

 


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About Author

Sarah is a reporter at The Block covering policy, regulation and legal happenings. Before, Sarah was a reporter with CQ Legal writing about securities regulation, which is where she first started reporting on crypto. Sarah has also written for The Bond Buyer and American Banker, among other finance-related publications. She graduated from the University of Missouri and earned a degree in print and digital journalism. Sarah is based in Washington D.C., and is an avid coffee lover. You can follow her on Twitter @ForTheWynn.

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