A lawsuit filed by Genesis against its parent company DCG could soon conclude after the two reached an agreement that would see the latter repay $275 million early next year.
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Posted November 29, 2023 at 3:06 am EST.
The friction between bankrupt crypto lender Genesis and its parent company Digital Currency Group (DCG) may soon be resolved, with the crypto conglomerate agreeing to pay its outstanding loans next April.
In a Tuesday filing in a New York Bankruptcy Court, Genesis said that DCG had paid off some of the loans, but still owes the firm $275 million, which it expects to receive in April 2024 as per the terms of the deal. If DCG defaults, Genesis can try to pursue the unpaid amounts.
Genesis expects that the new repayment deal will provide it with $200 million in value over the next few weeks.
Genesis took DCG to court in September, seeking the repayment of $600 million worth of loans with interest and fees.
In the complaint filed against DCG, Genesis said it made four loans worth $500 million to its parent company in 2022. DCG also attempted to convert these loans into open loans, which Genesis did not agree to, even during the months-long mediation between the parties.
Since the lawsuit, DCG has made some repayments, amounting to roughly $227.3 million. While the firm still owes $324.5 million to Genesis, the April deadline for the $275 million due to be repaid will likely put the executives involved and industry watchers at ease, as the two firms would avoid what would undoubtedly be costly litigation.
