Per CoinDesk
Genesis and DGC reached an initial agreement with main creditors: equitization of a $1.1B 10-year promissory note to 3AC included
2/7/2023
In the wake of FTX, Genesis, another crypto firm that also filed for bankruptcy, is entering an initial agreement with main creditors alongside the crypto firm's parent company, DGC (Digital Coin Group). The initial agreement includes restructuring plan terms.
A source familiar with the story said in an article by CoinDesk that the agreement will help resolve major issues that caused the bankruptcy. As revealed in the term sheet, $500 million in cash and $100 million in Bitcoin were borrowed by DCG from Genesis.
The term sheet also included a 10-year promissory note given to Genesis by DCG worth $1.1 billion. The promissory note was for the return of claims from the failed hedge fund Three Arrows Capital (3AC), another crypto firm owned by DCG.
According to the person familiar with the situation, creditors will be offered the proposal deal. These will also include Gemini Earning customers, hundreds of thousands of people.
Genesis attorney Sean O'Neal told bankruptcy court's Judge Sean H. Lane that the now-bankrupt crypto firm had planned how to deal with the case. The statement also included clarification that they do not want a prolonged case, per another article by CoinDesk.
O'Neal: “We have a timeline and an approach to get through this case as quickly as possible... We really want to avoid getting involved in a prolonged case with litigation that effectively destroys value that would otherwise be available for the creditors.”
Early this year, the SEC charged Genesis and Gemini for selling unregistered securities. Both crypto firms were reportedly in a battle for the fate of customer funds that are worth $900 million.
The news comes shortly after word that FTX was believed to have over a million creditors, with the top 50 alone being owed $3 billion collectively. Some of these creditors included Goldman Sachs and JP Morgan.
See flow at unusualwhales.com/flow.
Other News:
- Genesis and Gemini charged by SEC with selling unregistered securities
- FTX Believed to have Over a Million Creditors: $3 Billion Collectively Owed to the Top 50 Alone
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