Digital Currency Group (DCG), the parent company of the now-bankrupt crypto broker Genesis Global Capital, has come up with a plan to pay back its creditors.
According to recent court filings, the company plans to transfer equity in Genesis Global Trading to Genesis Global Holdco and eventually sell both companies to raise the necessary capital.
“Genesis today moved a step closer to a resolution for our lending business that maximizes value for all clients and stakeholders,” said Derar Islim, Interim CEO of Genesis Global Trading. “We have filed with the court our previously announced agreement in principle with DCG and key groups of creditors.”
Genesis Global Capital was once a lending partner of the New York-based crypto exchange, Gemini, for its Gemini Earn program.
This program allowed investors to loan their crypto assets to Genesis for up to 8% interest. However, Genesis had to halt customer withdrawals in November 2022 after the collapse of the Bahamas-based crypto exchange FTX.
The crypto brokerage filed for Chapter 11 bankruptcy on January 20th, with its aggregated liabilities ranging from US$1 billion to US$10 billion and over 100,000 creditors.
Last week, Gemini agreed to put up US$100 million towards Earn users’ asset recovery as part of an in-principle agreement with Genesis and DCG, among others, to place all entities under Genesis Global Holdco.