$100 Million Deal Between Gemini and Genesis
Crypto exchange Gemini and loan firm Genesis have reached a $100 million settlement over the Earn program. The two have been at odds over the past few months, and the deal will deliver a better outcome for the customers and stakeholders involved. A press release on the matter, released Feb. 6, states that it will “in principle lay out a framework for a global solution that will maximize value for all Genesis customers and stakeholders.”
As part of its bankruptcy plan, Genesis will swap $1.1 billion in existing bonds due in 2023 in exchange for convertible preferred stock to be issued by Digital Currency Group (DCG). DCG will also refinance existing 2023 term loans through a new, small-collateralized term loan in two tranches to be paid to creditors totaling approximately $500 million. Gemini will contribute up to $100 million in additional funding to Earn users.
Gemini co-founder Cameron Winklevoss tweeted about the development. He said the plan was a “critical step” towards asset recovery for Genesis creditors. Gemini has also published a page that will provide updates on the issue and will see updates every Tuesday and Friday until a resolution is reached.
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