Genesis entity going up for sale as DCG makes creditor pact

Published at: Feb. 6, 2023

Genesis Global has announced it has reached an "agreement in principle" with Digital Currency Group (DCG) which will eventually see its crypto lending and trading arm sold as part of restructuring efforts.

According to a Feb. 6 press release, DCG would contribute its equity in Genesis Global Trading, a trading subsidiary business, to Genesis Global Holdco, the holding entity for Genesis — bringing all Genesis-related entities under the same holding company.

After the transactions are final — pending necessary court approval — Genesis will seek to put its then-owned Genesis Global Trading entity up for sale.

Crypto exchange Gemini also agreed to contribute $100 million for its Gemini Earn users who have funds frozen with the bankrupt firm.

Genesis is currently restructuring as part of its Chapter 11 bankruptcy proceedings stemming from a liquidity crisis in November 2022, brought on by the bankruptcy of crypto exchange FTX.

Genesis Global Trading was not included in the company's Chapter 11 filing at the time saying the business would "continue client trading operations."

At an initial bankruptcy hearing in January Genesis lawyers expressed the firm was looking for a quick resolution to it's creditor disputes and were optimistic the company would come out of Chapter 11 proceedings by late May.

This is a developing story, and further information will be added as it becomes available.

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