- Digital Currency Group (DCG) has reached a revised repayment agreement with its bankrupt subsidiary, Genesis Global Holdco LLC over a $620 million lawsuit
- The deal is set to provide Genesis with around $200 million in value over the next few weeks, with DCG obligated to fulfill outstanding payments by April 2024
- The agreement aims to settle a lawsuit initiated by Genesis in September to recover outstanding loans from its parent company
Digital Currency Group (DCG) has reached a revised repayment agreement with its bankrupt subsidiary, Genesis Global Holdco LLC, marking progress in resolving a $620 million lawsuit. The deal, disclosed during a Tuesday hearing, is set to provide Genesis with around $200 million in value over the next few weeks, with DCG obligated to fulfill outstanding payments by April 2024. The agreement aims to settle a lawsuit initiated by Genesis in September to recover outstanding loans from its parent company.
$630 Million Lawsuit Nears Conclusion
Genesis fell into bankruptcy in January owing more than $3 billion, sparking a raft of legal battles between its various entities, its parent company, and the exchange, Gemini. As a result of the financial mess, DCG owes over $1.65 billion to Genesis, which, in turn, owes around $1.2 billion to Gemini, with arguments leading to legal action as the year has progressed.
Genesis sued DCG for half the fee, with DCG putting forward solutions that it hoped would appease both Genesis and Gemini. DCG was supposed to make a $630 million payment to Genesis in May but missed the deadline, with DCG putting a new repayment plan forward in September. However, Gemini, which would have ultimately been on the receiving end, called DCG’s plan “misleading at best”.
Bankruptcy Judge Will Have Final Say
DCG has been making payments since the lawsuit’s filing, although it still owes $324.5 million to Genesis as of November 28, as per court documents. Details for this final payment appear to have been ironed out, however; alongside the agreed details, in the event of default, Genesis retains the right to pursue any unpaid amount through legal channels.
The announced deal will be integrated into Genesis’s proposed payout plan for creditors, subject to creditor voting, with a final decision on the proposal made by US Bankruptcy Judge Sean Lane, taking the vote into consideration.
