Genesis Creditors Agree to be Paid Back With Stock in Barry Silbert’s DCG

To smooth things over with the customers who’d handed crypto lender Genesis billions, Barry Silbert is slowly dismantling his crypto empire.

Silbert’s Digital Currency Group will issue more than $1 billion worth of new shares and look to go public by 2025 to help pay back creditors of its bankrupt Genesis subsidiary, in a deal unveiled Monday afternoon.

Creditor groups that are owed a total of more than $2 billion have for months been negotiating an agreement among themselves and also with Genesis and its parent company DCG. The plan, for which a term sheet could be filed with the bankruptcy court as early as Monday night, would significantly dilute existing DCG shareholders.