Home
News
- 1 Digital Currency Group (DCG) confirmed that it has cleared all of its short-term loans with Genesis.
- 2 The venture capital firm announced that it has updated its financial responsibilities.
DCG crypto firm announced that loans from now de-functional platform Genesis are now unburdened. The approximate amount of $700 Million is repaid. It is confirmed by the group. They have upgraded their financial obligations including $1 Billion paid to creditors last year.
The news of setting the debt is confirmed on X, formerly Twitter on January 6th. The thread on social media confirms that payment has been made.
Digital currency group posted “DCG is pleased to announce that we have completed a payoff of all short-term loans from Genesis. In total, DCG has paid off more than $1 billion of debt to its creditors in just over a year, including nearly $700 million to Genesis, satisfying all obligations currently due.”
Barry Silbert, CEO of DCG, said that even after so many challenges in the crypto market throughout the year, the debt commitments are fulfilled. He stated, “We have now repaid over $1 bn of debt, including this ~$700 mm, despite the headwinds faced by the industry.”
Why Genesis Sued Digital Currency Group?
The group indicated in November 2023 that they would repay all the outstanding loans to Genesis by April 2024. They stuck to their point and accentuated their loan repayments on X.
They have proposed the deal of repayments (by April) as an effort to end the lawsuit against DCG in September. Genesis filed legal action against the group for repayment of overdue loans of $620 Million.
Genesis filed for bankruptcy in January after suspending the withdrawals in November 2022. The platform owed more than $3.5 Billion in payments to 50 creditors, which includes Gemini and VamEck’s New Finance and Income Fund.
Digital Currency Group was sued by the bankrupt Genesis Global Capital crypto lending unit. Both sides negotiated on payments of loans. In a separate complaint, it has also filed a complaint against the group for recovering 4,550 Bitcoin worth about $117 Million. The company confirms that it is in talks of partial repayment by DCG.
As per the court papers, DCG owes more than $1.7 Billion to Genesis and other debaters. However, both parties settled later.
DCG pleasantly announced the repayment of loans to Genesis and is hoping for the future growth of the industry. They also confirm that they will continue to honor the financial commitments.
Barry Silbert has sought the issue by making the repayments within the time limit as committed by the group earlier.
Summary
DCG announced the full pay-off of all the debts to Genesis. The group has paid nearly $700 Million to the dysfunctional crypto platform. Despite the challenging market conditions, the group has fulfilled the debt conditions. The firm assured that they will continue good work for the growth of the industry.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
