Crypto firm DCG says Genesis' agreement with creditors to result in 70-90% recovery

(Reuters) - Digital Currency Group (DCG), the parent of bankrupt crypto lender Genesis Capital, said in a court filing on Wednesday that it expects to provide a recovery of 70%-90% for all unsecured creditors under a previously announced agreement.

Several crypto companies have been under pressure after the collapse of major exchange FTX sent shockwaves through the sector.

Genesis, which filed for bankruptcy protection in January and owes at least $3.4 billion to creditors, reached an in-principle agreement on a restructuring plan a month later to resolve claims.

Genesis reached a deal with its largest creditor Gemini after the cryptocurrency exchange sued DCG and its CEO in July for missing the exchange's deadline for agreeing to a restructuring deal.

Gemini Earn users are estimated to recover about 95% to 110% of their claims, according to a filing on Wednesday.

Venture capital firm DCG owes Genesis Capital approximately $526 million due in May 2023 and $1.1 billion under a promissory note due in June 2032.

"We strongly believe the proposed agreement represents the best outcome for all creditors," DCG said in a statement.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shweta Agarwal)