Genesis creditors might get back 70-90% of their money in U.S. dollars, if the changed plan happens.
Digital Currency Group (DCG), a big company in the cryptocurrency world, is close to a deal with the people who lent money to its crypto lending part, Genesis.
In a paper from August 29, it says that the people who lent money might get back 70-90% of their money in U.S. dollars, if the changed plan is approved.
If the new plan happens, people might get back 65-90% of their money in the form of digital assets, depending on what kind of digital asset it is.
Overview of the in-principle agreement between DCG, debtors and creditors. Source: Kroll.com
To settle its debts, which are around $630 million in loans that need to be paid by May 2023 and $1.1 billion that needs to be paid by 2032, DCG will borrow more money and agree to give back some of the money it owes. They will borrow $328.8 million that they need to return in two years and $830 million that needs to be returned in seven years.
DCG will also pay $275 million in smaller parts before their new plan begins, according to the paper.
Just like many other companies that lend money for cryptocurrency, Genesis had problems because the value of cryptocurrencies dropped a lot in 2022. In January 2023, the company had to say it couldn’t pay back more than $3.5 billion it owed to its top 50 lenders, like Gemini and VanEck’s New Finance Income Fund.
Before, in November 2022, Genesis stopped people from taking out their money because the market was really unstable due to the FTX exchange having problems. The company said a lot of people wanted their money back, more than the company had.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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