{"id":87643,"date":"2023-11-29T12:05:25","date_gmt":"2023-11-29T10:05:25","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=87643"},"modified":"2025-09-13T13:07:55","modified_gmt":"2025-09-13T10:07:55","slug":"dcg-to-pay-620-million-to-settle-genesis-lawsuit","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/dcg-to-pay-620-million-to-settle-genesis-lawsuit\/","title":{"rendered":"DCG to pay $620 million to settle Genesis lawsuit"},"content":{"rendered":"<p>Digital Currency Group (DCG) has reached a new debt-repayment agreement of $620 million with its bankrupt subsidiary Genesis Global Holdco LCC to settle the lawsuit. <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-11-22\/bankrupt-genesis-sues-crypto-firm-gemini-to-recover-690-million#xj4y7vzkg\">Bloomberg<\/a> reports.<\/p>\n<p>Genesis lawyer Sean O\u2019Neill said that under the deal the crypto lender would receive about $200 million in the coming weeks and would require DCG to complete the outstanding payments by April 2024.<\/p>\n<p>If the defendant defaults, Genesis may seek to recover any outstanding amount, according to the filings.<\/p>\n<p>The deal will avoid costly, protracted litigation, O\u2019Neill said. However, he noted that the agreement does not foreclose other disputes with DCG related to the bankruptcy settlement plan.<\/p>\n<p>On November 16, 2022 Genesis <a href=\"https:\/\/forklog.com\/en\/news\/genesis-global-capital-suspends-crypto-lending-operations\">froze withdrawals<\/a> and the issuance of new loans. The firm cited \u201cincreased requests\u201d from clients after <a href=\"https:\/\/forklog.com\/en\/news\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\">the collapse of FTX<\/a> and <a href=\"https:\/\/forklog.com\/en\/news\/british-virgin-islands-court-orders-liquidation-of-three-arrows-capital\">the hedge fund Three Arrows Capital<\/a>.<\/p>\n<p>In January 2023, the company and its subsidiaries Genesis Asia Pacific and Genesis Global Capital <a href=\"https:\/\/forklog.com\/en\/news\/genesis-part-of-digital-currency-group-files-for-bankruptcy\">filed for bankruptcy<\/a>. According to media reports, their obligations <a href=\"https:\/\/forklog.com\/en\/news\/financial-times-genesis-global-capital-owes-creditors-more-than-3-billion\">exceed $3 billion<\/a>. Included in this sum are claims <a href=\"https:\/\/forklog.com\/en\/news\/ft-reports-genesis-and-dcg-owe-gemini-clients-900-million\">by Gemini exchange clients for $900 million<\/a>.<\/p>\n<p>In August DCG <a href=\"https:\/\/forklog.com\/en\/news\/dcg-to-reimburse-genesis-creditors-up-to-90-of-funds\">pledged to compensate<\/a> Genesis creditors from 70% to 90% of funds. However the latter <a href=\"https:\/\/forklog.com\/en\/news\/genesis-creditors-call-dcg-proposal-unsatisfactory\">called<\/a> the offer \u201cunsatisfactory\u201d and threatened to block any final bankruptcy deal with such terms.<\/p>\n<p>In September Genesis <a href=\"https:\/\/forklog.com\/en\/news\/genesis-sues-dcg-over-600m-in-unpaid-loans\">filed a lawsuit<\/a> against DCG over unpaid loans of $600 million.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Digital Currency Group has reached a new debt-repayment agreement of $620 million with its bankrupt subsidiary Genesis Global Holdco LCC to settle the lawsuit.<\/p>\n","protected":false},"author":1,"featured_media":87644,"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-87643","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":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/87643","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=87643"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/87643\/revisions"}],"predecessor-version":[{"id":87645,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/87643\/revisions\/87645"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/87644"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=87643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=87643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=87643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}