May 29, 2024
DCG Settles $620 Million Lawsuit with Genesis Global in Bitcoin and USD
Latest Cryptocurrency News

DCG Settles $620 Million Lawsuit with Genesis Global in Bitcoin and USD

Crypto giant Digital Currency Group (DCG) has reached an agreement with its trading arm, Genesis Global, in connection with a $620 million legal dispute. As reported by Bloomberg, DCG has committed to paying nearly $200 million in Bitcoin (BTC) and U.S. dollars in the coming weeks, with an additional amount scheduled for payment by April 2024. The settlement, facilitated by Genesis lawyer Sean O’Neal, is seen as a means to avoid protracted and expensive legal battles. However, it’s important to note that this agreement does not address other disputes within Genesis’s broader strategy for resolving its bankruptcy.

This resolution follows a lawsuit initiated by Genesis against its parent company, DCG, seeking to recover $620 million in unpaid loans amid the backdrop of ongoing bankruptcy proceedings and settlement negotiations. Genesis Global had filed for Chapter 11 bankruptcy protection in the U.S. earlier in 2023, aligning itself with several other crypto entities that faced financial challenges. In August 2023, the company proposed a repayment plan of $1.4 billion to settle its debts. While this plan garnered support from a portion of its customer base, some key creditors remained in opposition.

The challenges for Genesis and its parent company persist as they grapple with increased scrutiny from New York regulators. In mid-October 2023, New York Attorney General Letitia James filed a lawsuit accusing Gemini Trust, Genesis Capital, and DCG of orchestrating a $1 billion fraud scheme that harmed investors. The legal action alleges that the Gemini cryptocurrency exchange, founded by Cameron and Tyler Winklevoss, deceived customers about the risks associated with its Gemini Earn program. Launched in 2021, Gemini Earn promised investors returns of up to 8% for lending their crypto to Genesis Capital.

Image by Vectorlogoseek

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