Genesis, its parent Digital Currency Group, Gemini and other creditors have reached a bankruptcy agreement to recover assets.
Sean O’Neal, a lawyer representing the debtors, said the sides agreed in principle and were working to finish the term sheet, with plans to file that as early as tonight or Tuesday. The deal involves Genesis Global Capital, DCG, two ad hoc creditor groups, including those representing more than $2 billion dollars in claims against GGC, and Gemini Trust Company, he said.
As part of the plan, DCG will contribute its equity interest in Genesis Global Trading to Genesis Global Holdco, bringing all Genesis entities under the same holding company, according to a statement released on Monday.
Genesis Global Holdco filed for Chapter 11 bankruptcy protection last month after taking a financial hit following the collapses of crypto hedge fund Three Arrows Capital and exchange FTX last year.
Gemini is committed to contributing $100 million to the proposed plan, Anson B. Frelinghuysen, a lawyer representing Gemini lenders, said today during a proceeding in the U.S. Bankruptcy Court for the Southern District of New York.
“Gemini founders Cameron and Tyler Winklevoss are doing this because they believe in the debtors’ reorganization and the Gemini platforms and they want to do the right thing for their users,” he said.
Gemini’s Cameron Winklevoss called the plan a “critical step forward,” on Twitter on Monday.
“There is still much work to be done to complete this process, including further due diligence of Genesis financials and judicial approval of this plan, but we are confident that we now have a framework in place to execute on,” he tweeted.
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