Decrypt’s Art, Fashion, and Entertainment Hub.
Bankrupt crypto broker Genesis has filed details on how it will pay back its creditors.
A Friday filing shows that Digital Currency Group (DCG) plans to turn its Genesis Global Trading equity over to Genesis Global Holdco to eventually sell both companies and pay back clients.
DCG is the parent company of Genesis, which is made up of two entities. Genesis has been in trouble because it served as the primary lending partner of Gemini, the New York-based crypto exchange, but went bust and owes users of the high-yield savings product Gemini Earn $900 million.
Earlier this week, Gemini co-founder Cameron Winklevoss announced on Twitter that cryptocurrency exchange Gemini, Genesis Global Capital, LLC (Genesis), and Digital Currency Group had reached an agreement.
Derar Islim, Interim CEO of Genesis Derar Islim said in a statement: "Genesis today moved a step closer to a resolution for our lending business that maximizes value for all clients and stakeholders. We have filed with the court our previously announced agreement in principle with DCG and key groups of creditors."
Gemini users were previously able to earn cash with their crypto via Genesis but it halted withdrawals in November after digital asset exchange FTX went bust. Genesis Trading revealed at the time that it had approximately $175 million in exposure to FTX. The company unsuccessfully sought a $1 billion bailout from investors before halting withdrawals and filing for bankruptcy, according to the Wall Street Journal.