Concord Between Gemini, DCG, and Genesis Inaugurates New Era for Bankruptcy Recovery

• Crypto exchange Gemini will contribute up to $100 million in cash for its customers, as part of an agreement with DCG and Genesis.
• The agreement comes after Genesis Global Capital found itself on the wrong side of the FTX collapse leaving it in deep financial trouble.

Genesis Global Capital Reaches Agreement with Creditors

Genesis Global Capital, a cryptocurrency lender, has reached an agreement with its creditors in principle. The agreement, which was announced on Twitter by Gemini co-founder Cameron Winklevoss, will see Digital Currency Group (DCG), Genesis’ parent company, contribute “all equity” in Genesis’ trading subsidiary, as well as a two-tranche debt facility and a $1.1 billion promissory note.

Gemini has also agreed to contribute up to $100 million in additional funds to help Earn users recover their assets.

The agreement is still subject to court approval, but it is a significant step forward for Genesis, which filed for bankruptcy in the US last month. The company had over $1 billion to $10 billion in assets and liabilities, and more than 100,000 creditors.

The agreement is likely to be welcomed by many creditors, who were concerned about the future of their investments. However, some creditors have expressed doubts about whether they will get most of their money back.

Stephen Sokolowinski, a crypto mining executive, recently sold $4 million of his claim against Genesis at a throw-away price of $1 million to Jefferies, an investment bank. He believes that he would see only a fraction of it if he stuck around through the bankruptcy process.

The agreement is a positive step for Genesis, but it remains to be seen how much money creditors will ultimately recover.