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”

article-image

Artwork by Axel Rangel

share

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


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Swiss regulator Gespa is assessing whether FIFA’s tokenized ticket sales for the 2026 World Cup violate gambling laws

by Blockworks /
article-image

The deal gives Ondo Finance SEC-registered broker-dealer, ATS, and transfer agent licenses to operate regulated tokenized securities markets

by Blockworks /
article-image

Ethereum and Solana funds mark industry first as Grayscale adds staking to spot crypto products

by Blockworks /
article-image

US bitcoin ETFs that seen more than $2.2 billion of net inflows over the last four trading days

by Blockworks /
article-image

More than 75 million U.S. Galaxy owners gain integrated Coinbase One access through Samsung Wallet, with global rollout planned

by Blockworks /
article-image

The central bank signed agreements with firms for fraud, payments, and app services ahead of a potential launch

by Blockworks /