Crypto Lender Genesis Battles DCG Over $500M Debt
Genesis, a struggling lender, alleges that Digital Currency Group (DCG) owes them approximately $500 million in loans.
DCG International also owes around 4,550 bitcoins worth roughly $116 million at the latest available information.
Genesis claims in legal filings that DCG is wrongfully holding assets belonging to the GGC estate. These loans, totaling $500 million, reached maturity in May.
Genesis asserts that because DCG failed to repay the loans by their maturity dates or convert them into open-ended loans, late fees now apply and will continue to accrue. DCG had requested loan conversion in May, but Genesis considered it untimely.
DCG is urged in the filings to return the principal amount to the GGC estate. DCG plans to document an agreement with Genesis, the UCC, and DCG to facilitate creditor recovery.
Genesis accuses DCG International of not repaying 4,550 bitcoins in a separate filing. In June 2022, Genesis and DCGI entered an agreement for an open-term loan involving approximately 18,690 bitcoins. DCGI partially repaid the loan, leaving about 4,550 bitcoins unpaid. Similarly, this loan matured in May and remains unpaid.
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Genesis highlights that on May 9, 2023, DCGI requested a suspension of the loan’s termination and reinstating it as an open-ended loan. However, Genesis did not agree to this, leading to the assertion that the outstanding balance matured and is due for payment, accruing late fees.
Notably, this isn’t the first instance of DCG missing loan payments. Gemini claimed in May that DCG had missed a $630 million payment, with earlier reports suggesting concerns about DCG’s potential default on its obligations.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
