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Genesis Initiates Process to Achieve Global Resolution to Maximize Value for All Clients and Stakeholders and Strengthen Its Business for the Future

Commences voluntary Chapter 11 restructuring of lending business to further advance ongoing stakeholder discussions and optimize outcome for Genesis clients and Gemini Earn users

Outlines Chapter 11 plan contemplating potential sale and/or equitization transaction to enable lending business to emerge under new ownership

Restructuring process led by independent special committee of the board of directors

Genesis�s derivatives and spot trading, broker dealer and custody businesses are not part of Chapter 11 and continue client trading operations

Ample liquidity of more than $150 million to support operations and facilitate restructuring process

NEW YORK--(BUSINESS WIRE)--Genesis Global Holdco, LLC (�Genesis� �GGH� or the �company�), an industry pioneer and digital currency prime brokerage, today announced strategic actions to achieve a global resolution to maximize value for all clients and stakeholders and strengthen its business for the future.

As previously announced, Genesis and its advisors have been engaged in ongoing, productive discussions with advisors to its creditors and corporate parent Digital Currency Group (�DCG�) to evaluate the most effective path to preserve assets and move the business forward. Genesis has now commenced a court-supervised restructuring process to further advance these discussions and reach a holistic solution for its lending business, which, if achieved, would provide an optimal outcome for Genesis clients and Gemini Earn users.

Genesis Global Holdco, LLC (�GGH�) and two of its lending business subsidiaries, Genesis Global Capital, LLC (�GGC�) and Genesis Asia Pacific Pte. Ltd. (�GAP�), filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (the �court�). Genesis�s other subsidiaries involved in the derivatives and spot trading and custody businesses and Genesis Global Trading are not included in the filing and continue client trading operations.

As part of its Chapter 11 filing, Genesis has proposed a roadmap to an exit including a Chapter 11 plan (the �plan�) that calls for a framework for a global resolution of all claims through, and the creation of, a trust that will distribute assets to creditors. The plan contemplates a dual track process in pursuit of a sale, capital raise and/or equitization transaction that would enable the business to emerge under new ownership. The company will initiate a marketing and sale process to monetize GGH�s assets or otherwise raise capital, using the transaction proceeds to pay creditors fairly and equitably. If the marketing process does not result in a sale or capital raise, creditors will receive ownership interests in Reorganized GGH.

All aspects of the restructuring process will be overseen by an independent special committee of the company�s board of directors.

�While we have made significant progress refining our business plans to remedy liquidity issues caused by the recent extraordinary challenges in our industry, including the default of Three Arrows Capital and the bankruptcy of FTX, an in-court restructuring presents the most effective avenue through which to preserve assets and create the best possible outcome for all Genesis stakeholders,� said Derar Islim, Interim CEO, Genesis. �We deeply appreciate our clients� ongoing patience and partnership as we work towards an equitable solution.�

Derar Islim was appointed to his position in August 2022 as part of a series of leadership announcements to further strengthen the company�s governance and position it for the future.

�We have crafted a deliberate process and roadmap through which we believe we can reach the best solution for clients and other stakeholders,� said Paul Aronzon, an independent director at Genesis. �We look forward to advancing our dialogue with DCG and our creditors� advisors as we seek to implement a path to maximize value and provide the best opportunity for our business to emerge well-positioned for the future.�

Genesis has more than $150 million in cash on hand which will provide ample liquidity to support its ongoing business operations and facilitate the restructuring process. The company has filed a number of customary "first day" motions with the court to enable day-to-day operations to continue in the normal course. Court approval for these requests is expected in the coming days. Redemptions and new loan originations in the lending business remain suspended, and claims will be addressed through the Chapter 11 process. Genesis and its advisors will continue to evaluate options to advance the process to reach a global resolution.

Additional information on the Chapter 11 filing, including access to court documents, is available at https://restructuring.ra.kroll.com/genesis.

Moelis & Company is acting as financial advisor to the company. Cleary Gottlieb Steen & Hamilton LLP is acting as legal counsel. Alvarez & Marsal is serving as restructuring advisor.

About Genesis

Genesis is a full-service digital currency prime brokerage providing a single point of access for select qualified individuals and global institutional investors. Genesis combines unrivaled operational excellence, a seamless user experience, and best-in-class client service to provide the full suite of services global investors require to manage their digital asset portfolios.

The firm offers sophisticated market participants a fully integrated platform to trade, borrow, lend, and custody digital assets, creating new opportunities for yield while increasing capital efficiency for counterparties.

For more information on Genesis, please visit genesistrading.com.

Contacts

Media
FGS Global for Genesis

[email protected]

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