July 16, 2024
DCG Triumphs in Settling $1B Debt, Including $700M to Genesis
Latest Cryptocurrency News

DCG Triumphs in Settling $1B Debt, Including $700M to Genesis

Digital Currency Group (DCG) has effectively resolved over $1 billion in debt, which includes a significant sum of nearly $700 million owed to its bankrupt subsidiary, Genesis.

The announcement was made by DCG CEO Barry Silbert, who utilized the social media platform X to share the news.

The debt settlement process commenced after Genesis filed a lawsuit against DCG and its affiliate, DCG International Investments (DCIG), in September.

Genesis aimed to recover approximately $627 million in loans that had matured in May 2023.

However, in late November, the parties reached an agreement on a repayment schedule, with the goal of settling the outstanding balance by April 2024.

In his post, Silbert stated that the company has completely repaid the funds borrowed from Genesis.

He also emphasized DCG’s overall debt repayment exceeding $1 billion, despite industry challenges, expressing excitement about the industry’s next chapter and DCG’s leadership role in it.

DCG issued an official statement confirming that all current obligations have been met according to the settlement agreement.

Genesis faced difficulties in 2022 when Three Arrows Capital, a crypto hedge fund, encountered issues, leading to liquidity problems for Genesis. The subsequent troubles at FTX further compounded Genesis’s challenges, ultimately leading to the company filing for Chapter 11 bankruptcy protection in January 2023.

Last month, Genesis and DCG reached a settlement to conclude the prolonged lawsuit aiming to recover $620 million in repayments from DCG.

As per the agreement, DCG committed to settling its outstanding $324.5 million in loans by April 2024.

The settlement provides Genesis with the option to pursue any unpaid amounts.

This resolution followed Genesis initiating a lawsuit against DCG in September, seeking to compel DCG to repay overdue loans totaling around $620 million.

In October, Gemini filed a lawsuit against DCG and CEO Barry Silbert, alleging fraud against creditors. The legal action came after Cameron Winklevoss, the billionaire co-founder of the Gemini crypto platform, presented his “best and final offer” in the bankruptcy restructuring of digital asset lender Genesis. The plan included $1.5 billion in forbearance payments and fresh loans, a $275 million forbearance payment, a $355 million debt tranche due in two years, and an $835 million debt tranche due in five years.

Image by DCG

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