The Digital Currency Group (DCG) announced this three days ago good news At. The company said it had repaid all of its subsidiary Genesis' debts. It now appears that the large amount of no less than $700 million was not repaid by the company after all. A document released by Genesis on Monday shows the company received just $189 million.
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It appears that parent company DCG hasn't repaid Genesis after all
In September 2023, Genesis sued its parent company for defaulting on an outstanding loan. It's $700 million in cash and Cryptocurrencies. The loan expired in May 2023, but DCG had not repaid almost all of it at that point. Court filings from September show DCG still has $1.7 billion in outstanding debt.
On January 5, 2024, Digital Currency Group announced on X (formerly Twitter) to have paid everything back to Genesis. In the message they write the following:
“DCG is pleased to announce that we have repaid all of Genesis’ short-term loans. In total, DCG has repaid more than $1 billion in debt, including $700 million to Genesis, in just over a year, meeting all outstanding obligations.”
— Digital Currency Group (@DCGco) January 5, 2024
Now it appears that this is not correct according to the litigation committee set up by Genesis. DCG did make a payment, but it was only $189 million. Additionally, DCG has repurchased certain ETHE shares and illiquid ETCG shares. However, this falls far short of what DCG owes its subsidiary.
The crypto company Genesis is bankrupt
Genesis, among other things, is a crypto lending platform that was founded in 2013. The company has been in bankruptcy since January 19, 2023. The company had $2.8 billion in outstanding loans as of November 2022, which was too much for Genesis. They have been bankrupt ever since reorganizeThis also includes the repayment of debts by other companies.
Genesis is not just a crypto lending platform; Crypto exchange. This branch of the company went bankrupt in September 2023. The company has had a long-standing dispute with another crypto exchange, Gemini, which had poured $900 million into the Genesis earning program. Gemini is still active as a company but is not available in the Netherlands.
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