it seems that the crypto giant Genesis has finally reached an agreement with its creditors that involves selling off its crypto lending and trading arm. This move comes after Genesis filed for bankruptcy under Chapter 11 of the US Bankruptcy Code in January, proposing a solution to "emerge under new ownership."
And who would have thought, the new ownership happens to be none other than Barry Silbert's Digital Currency Group (DCG), who will exchange its existing $1.1bn promissory note for convertible preferred stock issued by DCG. How convenient!
But wait, it gets even better. Not only is DCG taking over Genesis, but it will also "contribute its equity interest" in Genesis Global Trading to a holding company known as Genesis Global Holdco, effectively bringing all Genesis entities under the same umbrella. Talk about consolidation of power.
Genesis claims that this agreement will "maximize value for all Genesis clients and stakeholders." We can only imagine what that means for the average investor.
And let's not forget about the Winklevoss-owned exchange, Gemini, who will also "contribute" $100m to its Earn clients under the deal. But according to Cameron Winklevoss, this deal means that Earn users will not recover their assets. Who would have thought?
The heated public debate between the Winklevoss twins and DCG CEO Barry Silbert over the past few months over the Earn program has finally come to a head, with Cameron even calling for the DCG board to remove Silbert from his position.
It's a shame to see the state of the crypto industry, where those in power can make deals and agreements that benefit only themselves, leaving the average investor to pick up the pieces. But hey, at least we can all say we were a part of the major shake-up at Genesis.
Sarcasm aside, this is a developing situation and it will be interesting to see how it unfolds and what the outcome will be for all parties involved. One thing is for sure, the crypto industry is never dull.
