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Genesis and Gemini reach deal in bankruptcy proceedings

Digital Currency Group (DCG) and its subsidiary Genesis have reached a deal with creditors and crypto exchange Gemini.

By Luc Vesters
• 2 min read
Genesis and Gemini reach deal in bankruptcy proceedings

Digital Currency Group (DCG) and its subsidiary Genesis have reached a deal with creditors and the crypto exchange Gemini. This comes from a corresponding press release. Under the terms, DCG plans to swap its existing $1.1 billion bond for convertible Genesis shares.

"DCG would also refinance its existing 2023 term loans. They'll do this with a new subordinated secured term loan in two tranches totaling about $500 million to be paid to creditors," Genesis confirms. "The agreement lays out a framework for a global resolution designed to maximize value for all Genesis customers and stakeholders," the company said.

Additionally, crypto exchange Gemini has agreed to provide up to $100 million in additional financing as part of the deal. Cameron Winklevoss, Gemini co-founder, View post on X that the plan is a "decisive step" in asset recovery for Genesis creditors. It remains to be seen whether Gemini Earn customers will be compensated soon.

After weeks of uncertainty, Genesis sought bankruptcy protection on January 19 against creditors at January 19 bankruptcy protection. The U.S. Securities and Exchange Commission has sued both Genesis and Gemini for unregistered stock trading.

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