Genesis and Gemini Reach Agreement in Principe

The two companies have finally reached an agreement on a plan for restructuring.
Key TakeawaysGenesis and Digital Currency Group announced yesterday that they had reached a principle agreement.
The restructuring plan includes Genesis Global Trading being brought under Genesis Global Holdco.
Gemini will contribute up $100 million to make Gemini Earn clients whole.
Share this article According to the press release, Digital Currency Group will exchange a $1.1 billion note due 2023 for convertible preferred stock. This will be part of Genesis’ bankruptcy plan. Digital Currency Group will also be refinance its existing 2023 term loans with new term loans in two tranches (one in dollars and one in Bitcoin), for an aggregate total value of approximately $500 million. Digital Currency Group must also contribute its equity in Genesis Global Trading (Genesis trading arm) to Genesis Global Holdco (the crypto lending company that filed for bankruptcy on January 19, 2017). This will allow Genesis Global Holdco to refinance its current 2023 term loans. The new term loans will be issued in two tranches (one denominated in dollars, one in Bitcoin) and will have an aggregate total value of approximately $500 million. Gemini and Genesis created the Earn program in December 2020 to allow Gemini customers to loan their crypto assets to Genesis, and earn interest. Genesis froze redemption services immediately after FTX collapsed. Gemini co-founder Cameron Winklevoss claimed that Genesis owes over $900 million to Gemini Earn customers. However, this news is a positive step towards resolving Genesis’ liquidity problems. Winklevoss had earlier in the year published open letters on Twitter, accusing Digital Currency Group CEO Barry Silbert and calling for his removal from the company board. Disclaimer: The author of this article owned BTC, ETH and other crypto assets at the time of writing. Share this article. The information found on this website or accessed through it is obtained from independent sources that we believe are accurate and reliable. However, Decentral Media, Inc. does not make any representations or warranties as to the timeliness, completeness, accuracy, or timeliness of any information found on this website or accessed via it. Decentral Media, Inc. does not act as an investment advisor. We do not provide personalized investment advice or any other financial advice. This website’s information is subject to change at any time. The information on this website could become obsolete or incorrect. You may not be able to update any information that is outdated, incomplete or inaccurate. We also reserve the right to change any information that is incorrect, incomplete or outdated. If you need investment advice about an ICO, IEO or other investment, we strongly recommend that you consult a licensed financial advisor or other qualified financial professional. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.See full terms and conditions.Recommended News