According to a Monday report, the Digital Currency Group and its bankrupt subsidiary, Genesis, reached a preliminary agreement with the latter’s major creditors. The agreement is aimed at smoothing over several important points of contention, including DCG’s now-infamous 10-year promissory note to Genesis.

DCG and Genesis Reach an Agreement With Major Creditors

According to a report published on Monday, the Digital Currency Group and its subsidiary Genesis reached a preliminary agreement with a group of major creditors. The agreement is aimed at resolving a number of issues with Genesis’ bankruptcy, including its loan book, the 10-year promissory note, and the sale of the bankrupt company’s entities.

One important term involves the refinancing of DCG’s debt to Genesis and the equalization of its promissory note to the bankrupt firm issued in return for the claims of the collapsed Three Arrows Capital. Details on how this is to be achieved are yet to be revealed. Furthermore, the “in principle” agreement has been reached with a group of creditors collectively owed about $2.4 billion—it is yet to be given to Genesis’ other creditors like Gemini Earn customers.

Genesis became embroiled in the FTX contagion almost as quickly as it started as it froze withdrawals from its lending arm already on November 16th. After several months of restructuring attempts and uncertainty, the company filed for chapter 11 bankruptcy on January 20th.

DCG, Genesis and the FTX Contagion

While not the first firm to file for bankruptcy following the collapse of FTX, Genesis was one of the first major companies to demonstrate the impact the fall of the cryptocurrency exchange might have. Before the chapter 11 filing, the DCG subsidiary went through an extended period of restructuring attempts and a major round of layoffs that affected 30% of its staff.

The firm also found itself engaged in a feud with the Winklevoss twins’ Gemini as Genesis owes a substantial amount to the company. Gemini’s Earn program was itself prompted to pause withdrawals already on November 16th—just after Genesis. The feud became public early in 2023 when Cameron Winklevoss shared two open letters addressed to DCG’s Barry Silbert—accusing him of negotiating in bad faith in the first, and calling for his removal in the second.

The dispute ultimately led to the end of Gemini’s Earn program and the termination of its agreement with Genesis shortly before the latter company filed for bankruptcy. The situation triggered by the collapse of FTX became even more complicated on January 12th when the SEC sued both companies for unregistered securities offerings made through Gemini.

This article originally appeared on The Tokenist

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