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Friday Filing Reveals Details of DCG's Plan to Sell Genesis

Tim Fries

Published: February 13, 2023 3:17 am

Last Updated: February 13, 2023 1:19 pm

A filing from Friday, February 10th, shed some light on DCG’s plan to sell Genesis as part of the latter’s bankruptcy proceedings. Document number 80 on the restructuring firm’s website reveals that Barry Silbert’s company will turn over its equity in Genesis to a holding company to advance the sale.

DCG Plans to Turn Over Genesis Global Capital to a Holding Company

A filing added this Friday reveals additional details on DCG’s plan to sell Genesis as a part of the latter’s bankruptcy proceedings. The plan entails the Digital Currency Group turning over its Genesis Global Trading equity to the bankrupt Genesis Global Holdco in an effort to sell both companies.

According to the filing, there would be an effort to maximize the value of all Genesis holdings according to a set of principles that involve a joint purpose of debtors and creditors, as well as coordination and consultation between the parties. The existence of a possible agreement between Genesis and its creditors was initially revealed on Monday, February 6th.

Later on the same day, it was revealed that the major negotiating parties behind the agreement are the DCG, Genesis, and Gemini Trust. At the time, it was also announced that Gemini would contribute an additional $100 million to Gemini Earn customers in an effort to help them recover their assets. Monday’s reports also signaled that the Winklevoss-Silbert feud came to, at the very least, a temporary halt.

Genesis’ Troubled Bankruptcy

While not the first company to file for bankruptcy in the aftermath of the fall of FTX, Genesis was one of the first to suffer from disruptions as a consequence of the contagion. On November 16th, just five days after SBF’s company filed for chapter 11, Genesis announced it is freezing withdrawals from its lending platform.

The company entered into restructuring in late November, after reportedly failing to secure $1 billion in rescue funds. Rumors of an imminent bankruptcy resurfaced at the beginning of 2023, and a chapter 11 filing was revealed on January 20th, days after the firm reduced its headcount by 30%.

Winklevoss twins’ Gemini found itself directly impacted by Genesis’ troubles and it also halted withdrawals from its Earn program on November 16th. The negotiations between the companies were allegedly failing by the end of 2022 as Cameron Winklevoss made the conflict public by publishing two open letters on January 2nd and January 10th. Around the same time, the termination of the Earn program, and Gemini’s agreement with Genesis was also announced.

This article originally appeared on The Tokenist