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Seeking Alpha 2023-02-06 18:33:25

DCG and its troubled crypto lender Genesis strike deal with main creditors - report

Digital Currency Group, a cryptocurrency conglomerate, and its bankrupt Genesis subsidiaries have reached an initial deal on the terms of a restructuring plan with a number of the firm's primary creditors, CoinDesk reported Monday, citing a person with knowledge on the matter. Genesis' lending arm filed for bankruptcy protection in January after it was forced to halt customer withdrawals just days after crypto exchange FTX's ( FTT-USD ) official demise on Nov. 11, 2022. The in-principle pact was said to have consisted of winding down Genesis' loan book in addition to divesting the insolvent Genesis entities. The term sheet also entails refinancing the outstanding loans where Genesis loaned out $500M in cash and ~$100M worth of bitcoin ( BTC-USD ) to DCG, the person told CoinDesk. Neither DCG nor Genesis immediately responded to Seeking Alpha's request for comment. Previously, (Jan. 12) Genesis reportedly owed its creditors more than $3B .
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