Genesis Global Capital, in bankruptcy proceedings, has filed suits against Digital Currency Group (DCG) and Digital Currency Group International (DCGI), seeking repayment of several loans totaling more than $600 million.<\/p>\n
According to court filings, in 2022 DCG borrowed about $500 million under four different agreements, and in 2019 DCGI lent 18,697.7 BTC (~$481.5 million at the time of writing), of which 4,550.5 BTC (~$117 million) remained outstanding.<\/p>\n
Genesis and DCGI are subsidiaries of DCG.<\/p>\n
The repayment deadlines for both loans expired in May 2023. The plaintiffs’ lawyers said the entities ‘unlawfully hold assets belonging to Genesis’ bankruptcy estate.<\/p>\n
Representatives of the bankrupt firm noted that DCG sought to convert its debt into ‘open credits’ with no fixed repayment term, but the creditor reserved the right to seek repayment. Genesis also seeks late-payment penalties.<\/p>\n
\n“We are drafting an agreement [forbearance on exercising rights<\/span>] and expect to file it with the court soon. At this stage the company will begin distributing funds and continue on the path to substantial debt collection for Genesis creditors,” said DCG in response to the suit.<\/p>\n<\/blockquote>\n
On November 16, 2022, Genesis froze withdrawals<\/a> and halted the issuance of new loans. The firm cited heightened client demand after the FTX collapse<\/a> and the Three Arrows Capital hedge fund<\/a>.<\/p>\n
In January 2023 the firm and its subsidiaries Genesis Asia Pacific and Genesis Global Capital filed for bankruptcy<\/a>. According to media reports, their liabilities exceed $3 billion<\/a>. This amount includes claims by Gemini exchange clients totaling $900 million<\/a>.<\/p>\n
In August DCG pledged to reimburse<\/a> Genesis creditors 70% to 90% of their funds. However the creditors called<\/a> the offer ‘unsatisfactory’ and threatened to block any final bankruptcy deal on such terms.<\/p>\n
Back in May, DCG defaulted on a payment of $630 million<\/a> in connection with Gemini Earn users’ compensation.<\/p>\n
In July, the Gemini exchange run by the Winklevoss brothers filed a suit<\/a> against Digital Currency Group and its CEO Barry Silbert, calling the latter the ‘architect and mastermind of the fraud’. DCG later sought to have the suit dismissed<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"
Genesis Global Capital, in bankruptcy proceedings, has filed suits against Digital Currency Group (DCG) and Digital Currency Group International (DCGI), seeking repayment of several loans totaling more than $600 million.<\/p>\n","protected":false},"author":1,"featured_media":84123,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1162,184,1380],"class_list":["post-84122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-court-cases","tag-dcg","tag-genesis-global-capital"],"aioseo_notices":[],"amp_enabled":true,"views":"22","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/84122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=84122"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/84122\/revisions"}],"predecessor-version":[{"id":84124,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/84122\/revisions\/84124"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/84123"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=84122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=84122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=84122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}