Claim $500DCG Agrees to Settle Claims of Bankrupt Lender Genesis, Good News for Gemini?
As per the recent court filing on Tuesday, August 29, the Digital Currency Group (DCG) has entered an in-principle deal with bankrupt crypto lender Genesis, to settle the creditors’ claims.
Earlier this year in January 2023, Genesis filed for Chapter 11 bankruptcy after facing a major liquidity crisis following the collapse of crypto exchange FTX. The recent filing from Genesis parent DCG notes that the bankrupt crypto lender holds liabilities of $630 million in unsecured loans due in May 2023. Additionally, it also has a $1.1 billion unsecured promissory note due in 2032.
As per the in-principle deal, the Digital Currency Group (DCG) is looking to undertake new debt facilities along with a repayment agreement. This will include a $328.8 million first-lien facility along with 2-year maturity. Additionally, it will also include a $830 million second-lien facility with a 7-year maturity.
The filing notes that DCG is planning to pay a total of $275 million to its creditors in four installment payments. If executed, the proposed plan could lead to anticipated returns of approximately 70% to 90% for unsecured creditors in terms of U.S. dollars, and a recovery range of 65% to 90% in-kind based on the denomination of the digital asset, as stated in the filing.
Will Gemini Benefit From Genesis Settlement?
Following the bankruptcy of Genesis, crypto exchange Gemini has suffered the most as Genesis was the custodian of Gemini’s Earn Product. As per Gemini, Genesis owes them close to $1 billion as part of its customers’ funds.
On refusal to give back the funds, crypto exchange Gemini also filed a lawsuit against Genesis-parent DCG. However, DCG has filed a motion to dismiss the lawsuit stating that the lawsuit is “a continuation of the Winklevoss’s year-long Twitter-based character assassination.”
It’s not clear whether the current settlement plan will involve some partial refunds to Gemini. Genesis has outstanding debts of approximately $3.6 billion to its top 50 creditors. This also includes obligations to entities like Gemini, the cryptocurrency exchange established by the Winklevoss twins.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Michael Saylor’s “Green Dots” Message Hints At Fresh Bitcoin Buying As BTC Faces $90K Wall
- Fed’s Hammack Signals No Rush to Cut Rates as January Hold Odds Near 80%
- XRP ETFs Reach $1.21B as Asset Managers See a ‘Third Path’ Beyond Bitcoin
- Nearly $50M in USDT Stolen After Address Poisoning Scam Targets Crypto Trader Wallet
- Breaking: Rep. Max Miller Unveils Crypto Tax Bill, Includes De Minimis Rules for Stablecoins
- Will Solana Price Hit $150 as Mangocueticals Partners With Cube Group on $100M SOL Treasury?
- SUI Price Forecast After Bitwise Filed for SUI ETF With U.S. SEC – Is $3 Next?
- Bitcoin Price Alarming Pattern Points to a Dip to $80k as $2.7b Options Expires Today
- Dogecoin Price Prediction Points to $0.20 Rebound as Coinbase Launches Regulated DOGE Futures
- Pi Coin Price Prediction as Expert Warns Bitcoin May Hit $70k After BoJ Rate Hike
- Cardano Price Outlook: Will the NIGHT Token Demand Surge Trigger a Rebound?
