Genesis Global has announced that it has reached an “in principle agreement” with Digital Currency Group (DCG) whereby its cryptocurrency trading and lending division will be sold as part of restructuring efforts.
According to a February 6 press release, DCG would transfer its interest in Genesis Global Trading, a trading affiliate, to Genesis Global Holdco, Genesis’s holding entity, thereby making all Genesis-related entities part of it. holding company.
Once the transactions are final – pending the necessary judicial approval – Genesis will try to put its Genesis Global Trading entity, which it then owned, up for sale.
Cryptocurrency exchange Gemini has also agreed to contribute $100 million for its Gemini Earn users who have funds frozen at the bankrupt company.
Genesis is currently restructuring as part of its Chapter 11 bankruptcy proceedings stemming from a liquidity crisis in November 2022, triggered by the bankruptcy of FTX.
Genesis Global Trading was not included in the company’s Chapter 11 filing at the time saying the business “would continue the business operations of customers.”
At an initial bankruptcy hearing in January, Genesis lawyers said the company was seeking a speedy resolution of its disputes with creditors and were optimistic the company would emerge from Chapter 11 proceedings by the end of May.
This is a development story, and more information will be added as it becomes available.
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