Genesis Global and DCG Edge Closer to Resolution in Mega-Bucks Dispute
A recent court filing dated November 28th hints at a potential resolution between Genesis Global and Digital Currency Group (DCG), shedding light on a possible end to their legal clash.
Within a complex bankruptcy context, Genesis Global had previously filed a lawsuit against DCG, citing alleged control issues regarding loans surpassing $600 million. The suggested settlement, should it gain approval, stands to pivot the case’s course, steering away from a protracted legal showdown.
The Revised Agreement Revealed in the latest bankruptcy documentation, DCG has already cleared a fraction of its debt to Genesis Global, amounting to an approximate $227.3 million.
Outlined in the proposed settlement is an additional sum of $275 million from DCG, to be paid partly in U.S. dollars and Bitcoin, with completion expected by April 2024 through staggered installments.
An intriguing feature of this proposal includes an initial payment of $35 million, complemented by a $10 million reserve. Furthermore, the proposal seeks to use Grayscale Bitcoin Trust shares as collateral, bolstering the agreement’s security.
While the proposed settlement doesn’t cover the entire debt of roughly $324.5 million owed by DCG to Genesis Global, it signals a strategic maneuver to evade prolonged legal complexities and expenses. Both sides stand to gain from this potential resolution, offering a swifter outcome while mitigating legal costs.
In parallel, both companies face legal scrutiny from the New York District Attorney General for alleged fraudulent activities. A speedy settlement, once finalized, could redirect their focus toward tackling the pending government lawsuit.