Genesis Global has announced that it has reached an “agreement in principle” with Digital Currency Group (DCG) that will eventually see its crypto lending and trading arm sold as part of restructuring efforts.
According to a press on February 6 releaseDCG would contribute its capital in Genesis Global Trading, a trading subsidiary business, to Genesis Global Holdco, the parent entity of Genesis, bringing together all entities related to Genesis under the same parent company.
Once the transactions are final, pending the necessary court approval, Genesis will seek to put its then-owned Genesis Global Trading entity up for sale.
Cryptocurrency exchange Gemini has also agreed to contribute $100 million for its Gemini Earn users who have funds frozen with the bankrupt company.
Genesis is currently undergoing restructuring as part of its Chapter 11 bankruptcy proceedings derived from a liquidity crisis in November 2022, caused by the bankruptcy of the crypto exchange FTX.
Genesis Global Trading was not included in the company's Chapter 11 filing at the time, saying the firm would "continue business operations for clients."
At an initial bankruptcy hearing in January, attorneys for Genesis said the firm was looking for a quick resolution to its creditor disputes and were optimistic that the company would emerge from Chapter 11 proceedings at the end of May.
This is a developing story, and more information will be added as it becomes available.
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