Last Updated on February 7, 2023 by Bitfinsider

In order to recover assets, Genesis, its parent company Digital Currency Group, Gemini, and other creditors have come to a bankruptcy deal.

Attorney for the debtors Sean O’Neal stated that the parties had reached an agreement in principle and were working to complete the term sheet with the intention of filing it as soon as tonight or Tuesday. Genesis Global Capital, DCG, two ad hoc creditor groupings, including those who represent more than $2 billion in claims against GGC, and Gemini Trust Company are all parties to the agreement, he claimed.

In accordance with the proposal, DCG will transfer its equity stake in Genesis Global Trading to Genesis Global Holdco, unifying all Genesis enterprises under a single holding company.

Last month, Genesis Global Holdco filed for Chapter 11 bankruptcy protection after suffering financial losses as a result of the failures of the cryptocurrency exchange FTX and hedge fund Three Arrows Capital in 2017.

Anson B. Frelinghuysen, a lawyer for Gemini lenders, stated today at a proceeding in the U.S. Bankruptcy Court for the Southern District of New York that Gemini is committed to providing $100 million to the proposed plan.

He said: “Gemini founders Cameron and Tyler Winklevoss are doing this because they believe in the debtors’ reorganization and the Gemini platforms and they want to do the right thing for their users.”

Cameron Winklevoss of Gemini referred to the proposal as a “critical step forward” on Twitter.