Digital Currency Group has recently announced settling a significant portion of its pending payment towards the now-defunct crypto lending platform Genesis.
On January 6, 2024, Barry Silbert, the CEO of Venture Capital firm Digital Currency Group (DCG), issued a statement in which he confirmed that DCG had cleared all of its short-term loans that were currently due to Genesis and the firm has now caught up with all its pending obligations.
The clearing of this payment is part of the deal struck between DCG and Genesis, including the payment of over $1 billion to the creditors in the past year.
The statement made by DCG regarding the clearance of its pending payment stated: “DCG is pleased to announce that we have completed a payoff of all short-term loans from Genesis. DCG has paid off more than $1 billion of debt to its creditors in just over a year, including nearly $700 million to Genesis, satisfying all obligations currently due.”
Surprisingly, DCG could fulfill its financial obligations, given the topsy-turvy crypto market conditions in 2023. Barry Silbert also echoed similar sentiments as he stated that fulfilling these repayment duties was no easy task, but the firm stuck to its commitment and made sure that it fulfilled its role.
Silbert said: “We have now repaid over $1 billion of debt, including this $700 million, despite the headwinds faced by the industry.”
The legal dispute between DCG (Digital Currency Group) and Genesis unfolded in the latter half of 2022.
Genesis, facing challenges amid the crypto market downturn, initiated a lawsuit against its parent company, DCG, in November of 2022. Genesis stated in its lawsuit that it sought to recover over $689 million that customers withdrew during a run on the bank period.
The conflict extended to the Gemini Earn program, where Genesis claimed funds from crypto assets lent by Gemini users. Complicating matters, Genesis filed for bankruptcy in January of 2023, prompting negotiations over loan repayments.
In September of 2023, Genesis filed a separate lawsuit against DCG, claiming $620 million in unpaid loans.
The issue escalated with the New York Attorney General filing a lawsuit in October 2023 against DCG, Genesis, and Gemini, alleging fraud related to Gemini Earn and seeking $1 billion in restitution.
In November 2023, according to Cointelegraph, DCG agreed to settle all outstanding loans owed to Genesis by April 2024.
The proposed resolution aimed to end a lawsuit initiated by Genesis in September, which sought to compel DCG to repay overdue loans amounting to approximately $620 million.
After filing for bankruptcy, Genesis found itself indebted to its top 50 creditors, with a total owed amount surpassing $3.5 billion. Notable creditors included Gemini and VanEck’s New Finance Income Fund.
