Crypto Updates

DCG Agrees to In-Principle Deal with Genesis’ Creditors


Digital Currency Group (DCG) has entered into an
in-principle agreement with the creditors of its cryptocurrency lending
subsidiary, Genesis. This agreement could reportedly pave the way for
substantial recoveries, ranging from 70% to 90% in USD equivalent for unsecured

The recent court filing
on August 29, 2023, outlines a compelling prospect for creditors of Genesis.
This includes the potential for 65% to 90% recovery on an in-kind basis.
However, the prospective recoveries are contingent upon the denomination of the
digital assets.

Additionally, to address
the existing liabilities, DCG has reportedly devised a structured repayment
plan. With around USD $630 million in unsecured loans due in May 2023 and USD
$1.1 billion under an unsecured promissory note due in 2023, DCG’s strategy
involves a partial repayment agreement.

According to the court
documents, this agreement encompasses two tranches – the first totaling
approximately USD $328 million with a two-year maturity period and the second
involving USD $830 million with a seven-year maturity. The calibrated approach
aims to streamline the repayment process and mitigate the financial strain.

Besides that, DCG’s
resolution includes a provision for further payments . The…

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