Crypto News- On January 6, Digital Currency Group (DCG) proudly announced the successful resolution of all short-term loans owed to the now-defunct crypto lending platform, Genesis, in a statement shared on the X platform (formerly Twitter). DCG disclosed that it has diligently met its financial commitments, disbursing approximately $700 million to Genesis. This substantial payment contributed to an impressive total debt repayment of over $1 billion to various creditors over the past year.
Genesis and Digital Currency Group Reach Agreement on 700M Dollars Debt Settlement
Expressing contentment, DCG conveyed in its statement a sense of accomplishment in fulfilling the payoff of short-term loans from Genesis. DCG’s CEO, Barry Silbert, recognized the adverse conditions prevalent in the crypto market throughout 2023. Despite these challenges, Silbert underscored the company’s resilience in successfully repaying debts, stating, “We have now repaid over $1 billion of debt, including this approximately $700 million, despite the headwinds faced by the industry.”
DCG Clears $700M Genesis Debt, Exceeds 1B Dollars Repayment
This positive development stems from an agreement reached in November 2023, as reported by Cointelegraph. The agreement outlined DCG’s commitment to settling all outstanding loans to Genesis by April 2024, aiming to bring closure to a lawsuit filed by Genesis against DCG in September. The lawsuit sought the repayment of overdue loans amounting to around $620 million.
The backdrop to these financial maneuvers was Genesis’ filing for bankruptcy in January 2023, following the suspension of withdrawals in November 2022. At the time of its insolvency, Genesis found itself indebted to its top 50 creditors, with a substantial liability exceeding $3.5 billion. Notable creditors included firms like Gemini and VanEck’s New Finance Income Fund, marking a complex financial landscape in the crypto industry.
Leave a comment