Genesis Petitions for Mediator After Creditors Back Out of Restructuring Plan

DCG says that the creditors who reneged on the previous deal “raised all new demands”


Artwork by Axel Rangel


Genesis Global filed a motion asking the courts to supply a mediator after some creditors backed out of the bankrupt crypto lender’s restructuring plans. 

In a tweet, DCG — the parent company of Genesis — said that the creditors “have reneged and raised all new demands.”

Loading Tweet..

The mediation filing requests a sitting bankruptcy judge to mediate to “resolve and narrow the open issues” in order to “avoid additional cost and delay” that could arise. 

In February, Genesis announced that it had reached a deal in principle with its biggest creditors and parent company Digital Currency Group. The deal had been awaiting court approvals. 

According to the press release, the deal would have DCG ”exchange its existing $1.1 billion note due in 2032 for convertible preferred stock to be issued by DCG as part of Genesis’s Chapter 11 plan.”

“DCG would also refinance its existing 2023 term loans through a new, junior secured term loan in two tranches made payable to creditors in the aggregate total value of approximately $500 million,” it continued.

In addition to the mediation motion filed by Genesis–which originally requested a hearing on or around May 9 — the lender also filed to shorten the notice period and requested an April 26 hearing. 

This would also allow creditors to file an objection before April 26. 

The company filed for bankruptcy in January, two months after it halted customer withdrawals. 

Genesis owes around $3.5 billion to its top 50 creditors, including Gemini — the exchange co-created by the Winklevoss twins.

In January, a day after the exchange filed for bankruptcy, Cameron Winklevoss threatened to “take direct legal action” against DCG and its CEO, Barry Silbert

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Unlocked by Template.png


With the spot ETH ETF approval, the institutions are coming. stETH - given its dominance in marketshare, existing liquid market structures, and highly desirable properties - is poised for institutions.


Launching cryptocurrencies the old fashioned way may soon make a return


Kraken and CertiK brought their beef to social media after Kraken said researchers exploited $3 million through a bug


NVIDIA’s historic run is only deepening the divide between mega-cap tech stocks and the rest of the market.


EIP-7702 was quickly adopted for the next Ethereum upgrade, but developers haven’t quite locked it down