Digital Currency Group (DCG), a major venture capital firm in the cryptocurrency industry, has reached an agreement in principle with creditors of its crypto lending subsidiary, Genesis.

According to a court filing published on Aug. 29, the estimated United States dollar equivalent recoveries could amount to 70%–90% for unsecured creditors, should the amended plan be approved.

The amended plan could result in 65%–90% recovery on an in-kind basis, depending on the denomination of the digital asset, the filing notes.

To satisfy its existing liabilities to debtors — including $630 million in unsecured loans due in May 2023 and $1.1 billion under an unsecured promissory note due in 2032 — DCG would also enter into the new debt facilities and the partial repayment agreement. The debts include a $328.8 million first-lien facility with a two-year maturity and a $830 million second-lien facility with a seven-year maturity.

Related: FTX seeks $175M settlement with Genesis entities to resolve dispute

DCG would also pay $275 million in installments before the plan’s effective date under the partial repayment agreement, the filing notes.

Genesis is one of many crypto lending firms affected by the massive bear market of 2022, filing for bankruptcy in January 2023. The company owed more than $3.5 billion to its top 50 creditors, including firms like Gemini and VanEck’s New Finance Income Fund.

As previously reported, Genesis suspended withdrawals in mid-November 2022, citing unprecedented market turmoil related to the collapse of the FTX crypto exchange. The company claimed that the event triggered an “abnormal” amount of withdrawals that exceeded its liquidity.

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