DCG reaches ‘agreement in principle’ with Genesis creditors, debtors

Digital Currency Group (DCG), a major venture capital firm in the cryptocurrency industry, has reached an agreement in principle with creditors of its crypto lending subsidiary, Genesis.

DCG would also pay $275 million in installments before the plan’s effective date under the partial repayment agreement, the filing notes.

Genesis is one of many crypto lending firms affected by the massive bear market of 2022, filing for bankruptcy in January 2023. The company owed more than $3.5 billion to its top 50 creditors, including firms like Gemini and VanEck’s New Finance Income Fund.

As previously reported, Genesis suspended withdrawals in mid-November 2022, citing unprecedented market turmoil related to the collapse of the FTX crypto exchange. The company claimed that the event triggered an “abnormal” amount of withdrawals that exceeded its liquidity.

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