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DCG and its subsidiary, Genesis, reached a pivotal legal agreement that may reimburse creditors up to 90% and stabilize the volatile cryptocurrency market. 
In a pivotal development, Digital Currency Group (DCG) and its subsidiary, Genesis, <a href="https://restructuring.ra.kroll.com/genesis/Home-DownloadPDF?id1=MjQ2NzEwNg==&amp;id2=-1" data-type="link" data-id="https://restructuring.ra.kroll.com/genesis/Home-DownloadPDF?id1=MjQ2NzEwNg==&amp;id2=-1" target="_blank" rel="noopener noreferrer nofollow">have reached</a> a legal agreement with far-reaching implications for the cryptocurrency market. 
The deal addresses the bankruptcy issues facing Genesis, a crypto lending firm that filed for bankruptcy earlier this year amid market instability worsened by the collapse of FTX in November 2022. 
 You might also like: <a href="https://crypto.news/ftx-and-genesis-reach-settlement-in-bankruptcy-case/" rel="noopener noreferrer nofollow"> FTX and Genesis reach settlement in bankruptcy case </a> 
Genesis has proposed a revised recovery plan to reimburse creditors up to 90% of their initial investments. Specifically, the plan outlines a recovery range for unsecured creditors between 70% and 90%, and a potential for in-kind recovery between 65% and 90%, depending on the current value of digital assets. 
The agreement also offers solutions to DCG’s pressing financial obligations. It outlines a repayment strategy for its $1.1 billion unsecured promissory note due in 2032 and nearly $630 million in unsecured loans maturing in May 2023. 
The repayment involves two tranches totaling $830 million, with $328.8 million to be paid off over seven years. DCG also plans to fulfill the May 2023 obligations with four payments amounting to $275 million. 
This settlement is crucial for DCG and Genesis as it aims to resolve their financial troubles and stabilize the volatile crypto market. 
The case could set new benchmarks for managing and recovering digital assets in an industry marked by sensitivity to market changes. The bankruptcy revealed that Genesis owed around $3.5 billion to its top 50 creditors, including prominent entities like Mirana, MoonAlpha Finance, VanEck’s New Finance Income Fund, Gemini, and Cumberland. 
 Read more: <a href="https://crypto.news/report-new-yorks-attorney-general-investigating-dcgs-subsidiary/" rel="noopener noreferrer nofollow"> New York’s Attorney General investigating DCG’s subsidiary </a>

DCG and Genesis reach landmark settlement over bankruptcy

crypto.news

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