Bankruptcy Genesis Global Capital filed lawsuits against companies Digital Currency Group (DCG) и Digital Currency Group International (DCGI), demanding the repayment of several loans totaling more than $600 million.
According to the documents, in 2022 DCG borrowed about $500M under four different agreements, and in 2019 DCGI borrowed 18,697.7 BTC (~$481.5M at the time of writing), of which 4,550.5 BTC (~$117M) remained outstanding. ).
Genesis and DCGI are subsidiaries of DCG.
Both loans expired in May 2023. Lawyers for the prosecution said the organizations “wrongly own property” belonging to the bankruptcy estate of Genesis.
Representatives of the bankrupt firm noted that DCG wanted to convert its debt into “open loans” with unlimited maturities, but the lender retained the right to a refund. Genesis also requires late fees.
“We’re making an agreement [о воздержании от осуществления права] and we expect to file it in court in the near future. At this point, the company will begin distributing funds and continue on its path to significant debt collection for Genesis creditors,” DCG responded to the lawsuit.
On November 16, 2022, Genesis froze the withdrawal of funds and the issuance of new loans. The firm cited “increased demand” from clients following the collapse of FTX and hedge fund Three Arrows Capital.
In January 2023, the company and its subsidiaries Genesis Asia Pacific and Genesis Global Capital filed for bankruptcy. According to media reports, their liabilities exceed $3 billion. This amount includes claims from clients of the Gemini exchange for $900 million.
In August, DCG promised to refund Genesis creditors between 70% and 90% of the funds. However, the latter called the proposal “unsatisfactory” and threatened to block any final bankruptcy deal with similar terms.
Recall that in May, DCG overdue a payment of $ 630 million as part of the compensation to users of Gemini Earn.
In July, the Winklevoss brothers’ exchange sued Digital Currency Group and its CEO Barry Silbert, calling the latter “the architect and mastermind of the scam.” The DCG was later asked to dismiss the lawsuit.
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2023-09-07 08:43:43
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