Genesis Clients,

I am reaching out today to share a very positive development in our restructuring process. We have reached an agreement in principle with our corporate parent Digital Currency Group (DCG) and a group of the ad hoc groups of creditors of Genesis Global Capital, LLC on a global resolution for Genesis’s clients and stakeholders. The full announcement can be found here.

Under the terms of the agreement, DCG would 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.

DCG will also contribute its equity interest in Genesis Global Trading (GGT) to Genesis Global Holdco, bringing all Genesis entities under the same holding company. GGT is currently a DCG-owned legal entity that is separate and distinct from Genesis Global Holdco. All other Genesis entities, including Genesis Global Capital, LLC, Genesis Asia Pacific Pte. Ltd. and GGC International Limited (GGCI) are held by Genesis Global Holdco.

As part of the agreement, Gemini has agreed to contribute up to $100 million in additional funds to Earn users as part of the Plan.

Pending the close of these transactions, our special committee and advisors will launch a sale process for GGT and explore other value-maximizing transactions.

Redemptions and new loan originations in the lending business remain suspended, and claims will be addressed through the Chapter 11 process.

Genesis’s other subsidiaries involved in the derivatives and spot trading and custody businesses and GGT are not included in the filing and continue trading operations, serving our clients’ needs as they always have. I am grateful to the talented team at Genesis for their ongoing dedication, and am excited about working together to build Genesis for the future.

While this agreement in principle remains subject to definitive documentation and necessary court approvals, I am confident that this provides a foundation for a strong emergence.

For additional information about the Chapter 11 process, please visit our website or our case website hosted by Kroll.

We remain grateful for your continued patience and loyalty and will continue to keep you updated as we advance through this process.

Regards,
Derar Islim
Interim CEO, Genesis