April 19, 2024
Genesis Global's Battle for Loan Repayment: $600 Million Dispute with DCG and DCGI
Latest Cryptocurrency News

Genesis Global’s Battle for Loan Repayment: $600 Million Dispute with DCG and DCGI

Genesis Global, a defunct cryptocurrency corporation, filed two lawsuits on Wednesday targeting Digital Currency Group (DCG) and Digital Currency Group International (DCGI), demanding repayment of loans totaling more than $600 million, including more than $115 million in Bitcoin.

Genesis, a lender that stopped accepting withdrawals in November after the collapse of the cryptocurrency exchange FTX, is owned by DCG.

Genesis Global said in court documents filed on Wednesday in the Southern District of New York’s bankruptcy court that two loans, with a combined balance of around $620 million, have not been serviced. The loans included around 4,550 Bitcoin, according to the business, and they matured in May.

In addition, the action seeks to recoup outstanding interest and late charges.

Genesis Global filed for bankruptcy in January, not long after it had let go of 30% of its workforce. The lending company was one of many cryptocurrency firms that suffered greatly from the stunning failure of digital asset megabrand FTX in November of last year.

Being the main financing partner of the New York-based cryptocurrency exchange Gemini puts Genesis in danger. It owes customers of the high-yield savings product Gemini Earn $900 million after going out of business.

Recently, DCG announced that it had achieved an in-principle deal with Genesis Global’s creditors to settle the claims that surfaced during Genesis’ bankruptcy, with the goal of ensuring a reasonable return for creditors.

New York-based Genesis Global Trading—a Genesis-linked company—announced yesterday it would wind down its spot trading crypto trading service next month for “business reasons.” The company offers over-the-counter market-making services in crypto.

Image: Freepik

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