By Source: Digital Currency Group
Digital Currency Group (DCG) has successfully settled over $1 billion in debt, including the substantial amount of nearly $700 million owed to its bankrupt subsidiary, Genesis.
The announcement came from DCG CEO Barry Silbert, who took to the social media platform X to share the news.
I’m happy to share that @DCGco completed a full pay down of the money borrowed from Genesis
We have now repaid over $1 bn of debt, including this ~$700 mm, despite the headwinds faced by the industry
I’m excited about the industry’s next chapter and DCG’s leadership role in it https://t.co/Jlbu3Zs7Xl
— Barry Silbert (@BarrySilbert) January 5, 2024
The debt settlement process began after Genesis filed a lawsuit against DCG and its affiliate, DCG International Investments (DCIG), in September.
Genesis sought to recover approximately $627 million in loans that had matured in May 2023.
However, in late November, the parties reached an agreement on a repayment schedule, with the aim of settling the outstanding balance by April 2024.
In his post, Silbert said that the firm has fully repaid the funds borrowed from Genesis.
He further highlighted DCG’s overall debt repayment of over $1 billion, despite the challenges faced by the industry.
“I’m excited about the industry’s next chapter and DCG’s leadership role in it.”
DCG released an official statement, affirming that all current obligations have been met as per the settlement agreement.
The troubles faced by Genesis originated in 2022 when Three Arrows Capital, a crypto hedge fund, encountered difficulties, leading to liquidity issues for Genesis.
The subsequent downfall of FTX further compounded Genesis’s challenges, ultimately resulting in the company filing for Chapter 11 bankruptcy protection in January 2023.
Genesis Reaches Settlement With DCG
Last month, Genesis and DCG reached a settlement to end the protracted lawsuit aimed at recovering $620 million in repayments from DCG.
Per the agreement, DCG committed to settling its outstanding $324.5 million in loans by April of 2024.
The settlement allows Genesis the option to pursue any unpaid amounts.
The proposed settlement came after Genesis initiated a lawsuit against DCG back in September.
The legal action sought to compel DCG to repay loans that had become overdue, totaling around $620 million.
Back in October, Gemini filed a lawsuit against DCG and its CEO Barry Silbert for allegedly defrauding creditors.
The lawsuit came after Cameron Winklevoss, the billionaire co-founder of the Gemini crypto platform, put forth his “best and final offer” in the bankruptcy restructuring of digital asset lender Genesis.
The plan included $1.5 billion in forbearance payments and fresh loans, a $275 million forbearance payment, a $355 million debt tranche due in two years, and an $835 million debt tranche due in five years.
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