Digital Currency Group (DCG) and its subsidiary Genesis, a leading crypto lending platform that filed for Chapter 11 bankruptcy protection, have reached a preliminary agreement with the firm’s main creditors — including Gemini.

Under the terms of the agreement, Genesis will wind down its loan portfolio, sell off its assets, and refinance its outstanding loans with the help of DCG, which will provide $500 million in cash and roughly $100 million worth of bitcoin. Additionally, the term sheet will convert the controversial 10-year promissory note that DCG issued to Genesis in exchange for the claims of the failed hedge fund Three Arrows Capital into equity.

The creditor group, which was represented by law firms Proskauer and Kirkland, as well as restructuring banker Houlihan Lokey, negotiated on behalf of companies and individuals with claims totaling around $2.4 billion against Genesis. The deal will also be extended to other lenders, including hundreds of thousands of users of the Gemini Earn lending program.

Gemini has agreed to contribute up to $100 million in additional funds for Earn users as part of the plan.

During a status hearing, Sean O’Neal, an attorney for Genesis and representing Gottlieb, presented the details of the proposed settlement. Under the agreement, DCG will contribute Genesis Global Trading to Genesis Global Holdco and work to sell both the debtors’ assets and Genesis Global Trading’s assets as a package in order to maximize recoveries for the estate.

The deal also includes a restructuring of the debt owed by DCG to Genesis Holdco and the issuance of a class of convertible preferred stock by DCG.

Paul Aronzon, a member of the special committee, said, “Today’s agreement is a positive step forward and provides a clear path to a consensual resolution that maximizes value.” Derar Islim, Interim CEO of Genesis, expressed his appreciation to clients for their continued patience and loyalty during the resolution process.