Genesis Global Sues Capital DCG for Unpaid Loans

Bankrupt crypto lending firm Genesis Global Capital has sued its parent company Digital Currency Group (DCG) for loans it didn’t pay.

$620 Million Litigation Against Parent Company DCG

Genesis sued DCG for outstanding loans worth approximately $620 million. This development comes just after Genesis announced its $1.4 billion debt repayment plan backed by its customers.

Genesis filed a lawsuit in New York bankruptcy court Wednesday, saying they will continue to discuss a potential settlement that could end the dispute.

Loan Agreements Between Them

A financial relationship between DCG and Genesis began with a “principal loan agreement” signed in 2019. According to Genesis, the company had loaned DCG over 18,000 Bitcoins in 2022, turning this debt into a fixed-term loan that was due on May 11, 2023. However, the debt remained unpaid.

DCG said it signed a “modified and reorganized prime loan agreement” with Genesis and documented a standstill agreement. DCG explains: “At this point, we will initiate the distribution of funds and continue on a path of significant recovery for Genesis creditors.”

DCG and Genesis’ Relation

Genesis took a major financial hit after the collapse of Three Arrows Capital and FTX last year and filed for bankruptcy protection in January. Following this process, DCG and Genesis entered a legal battle, in which Gemini Exchange blamed DCG and its CEO Barry Silbert.

Source: The Block

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