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Genesis Agreed with DCG for $620 Million Lawsuit! Crypto lending firm Genesis and its parent company, Digital Currency Group (DCG), have entered into a series of agreements to resolve a lawsuit initiated for the repayment of a $620 million debt.
In its application submitted to the United States Bankruptcy Court for the Southern District of New York on November 28, Genesis stated that the DCG will pay its unpaid debt of $324.5 million due by April 2024, allowing Genesis to undertake the necessary follow-up procedures.
The purpose of this proposed agreement is to terminate the lawsuit Genesis filed against DCG in September, demanding repayment of the company’s approximately $620 million in overdue loans. DCG has made payments in certain amounts since the beginning of the lawsuit.
Genesis stated that the repayment agreement will bring “immediate significant and near-term benefits” to itself, and will prevent the “risks, expenses, and exhaustion of resources brought along with litigation”.
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This agreement will be part of a repayment plan for Genesis’ creditors, and the votes of debtors will be taken into consideration. Judge Sean Lean will hold a vote on the plan before making a final decision. Genesis had previously filed a lawsuit against cryptocurrency exchange Gemini on November 22, requesting to recoup approximately $670 million in money transfers.
On the other hand, firm and Gemini are facing a situation where the U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against them for alleged worthless securities sales. The state of New York has also filed a lawsuit against Genesis, Gemini, and DCG, alleging that the trio defrauded their investors.
Genesis filed for bankruptcy in January, after suspending cash withdrawal transactions in November 2022.
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