- Digital Currency Group has missed a $630 million payment to Genesis
- The payment was supposed to be part of a debt agreement involving Gemini
- Gemini has now threatened to take further action against DCG, which looks to be in financial dire straits
Digital Currency Group (DCG) failed to make a $630 million payment to bankrupt lending platform Genesis earlier this month, leaving creditors of the bankrupt Genesis in limbo. DCG was supposed to pay the amount to Genesis as part of an agreement drawn up between the two, with the money going to Genesis’ creditors, following the company’s bankruptcy earlier this year, but it never made it. In response, Gemini said it is considering a new master claim for the $1.1 billion it says Genesis owes it, and will potentially work with Genesis on a new repayment plan without DCG’s involvement.
DCG Reneged on Deal
Genesis filed for bankruptcy in January with over $3 billion in liabilities, locking a billion dollars worth of funds from Gemini Earn customers on its platform in the process. Gemini and DCG were locked in a battle of words for weeks afterwards, with Gemini’s owners the Winklevoss twins threatening to take DCG CEO Barry Silbert to court if he didn’t help work towards a solution.
Eventually a “comprehensive settlement” was agreed between Gemini and DCG, which would see up to 80% of the funds returned to Gemini, with DCG expected to make a $630 million payment towards this between May 9 and 11. However, according to updates on the Gemini website, DCG failed to make this payment to Genesis, which will see the company take new steps to recover its money:
Genesis Rolls Up its Sleeves
DCG has not yet commented on this missed payment or the suggestions it may default, with its latest Twitter post relating to the 30-day mediation that the companies were involved in, claiming that, “DCG is in discussions with capital providers for growth capital and to refinance its outstanding intercompany obligations with Genesis.”
Clearly, these discussions did not meet a positive conclusion, leaving the future of DCG unclear and the situation with Genesis’ creditors more precarious than before the talks.
