The dispute between the crypto billionaire Winklevoss twins and Digital Currency Group (DCG) founder and CEO Barry Silbert has apparently come to an end, paving the way for the resolution of one of the cryptocurrency industry’s largest bankruptcies.

The agreement between the two sides is expected to bring an end to a months-long stalemate. The dispute comes after the dispute turned into a public feud and left 340,000 customers of the Gemini Trust, owned by the Winklevoss twins, in limbo and having their funds frozen.

DCG and creditors including Gemini, which represents a $2 billion claim against DCG's bankrupt Genesis lending unit, have reached an agreement that includes DCG restructuring about $1.7 billion in debt it owes Genesis and other liabilities. DCG will also give a stake in another business, Genesis Global Trading, to its bankrupt Genesis lending arm.

Crypto exchange Gemini previously collaborated with Genesis on a high-yield product called "Earn". Now after reaching an agreement, it will provide Gemini Earn customers with $100 million and equal the value of specific collateral previously obtained from Genesis. Allocated to Earn clients as their funds were frozen along with the bankrupt Genesis.

“We’ve made good use of our time over the last two weeks,” Sean O’Neil, an attorney representing creditors, said Monday during a hearing on the agreement, which still must be approved by the bankruptcy judge overseeing the case.

Genesis is a subsidiary of cryptocurrency venture capital DCG. After the exchange FTX went bankrupt last year, a run broke out on Genesis and it filed for bankruptcy protection last month, becoming the latest company to go bankrupt due to the collapse of the cryptocurrency exchange FTX. company of. Genesis suspended withdrawals in November, a move that left Earn users without access to hundreds of millions of dollars worth of cryptocurrency.

It also sparked a war of words between DCG and Gemini, with the Winklevoss brothers accusing Barry Silbert of making false claims and calling for his removal as chief executive.

However, on Monday, Cameron Winklevoss changed his tone and described the agreement reached by the two parties as providing a path for Earn users to recover their assets.

Genesis said in January it aimed to exit bankruptcy court as soon as possible, and the filing indicated it hoped to implement a reorganization plan by May 19. That's a much faster schedule than bankrupt peers Voyager Digital and Celsius Network.

Genesis' Chapter 11 bankruptcy documents show that the company owes more than $3 billion to the top 50 creditors, with at least $100 million owed to the seven largest creditors. The largest creditor is Gemini Earn customers with a claim of $766 million.

In the debt masterplan announced on the 6th, DCG was required to provide a second mortgage facility for the nearly $600 million in loans the company owed Genesis this year. The facility consists of two tranches, one denominated in U.S. dollars and one in Bitcoins. Coin pricing. The entire loan facility is worth the equivalent of $500 million and will mature in June 2024.

To satisfy parent company DCG's $1.1 billion promissory note owed to Genesis, DCG will issue convertible preferred stock that will be converted into common stock of DCG or another subsidiary DCG may establish. Genesis' lawyers said negotiations are ongoing.

"This simplifies the whole situation and allows more value to be saved," said Aaron Brown, a cryptocurrency investor who writes for the media.

This article Winklevoss brothers and DCG execs strike a deal! Resolving the Genesis bankruptcy dispute first appeared on Blockchain.