Genesis Hits Parent Company DCG With $600 Million Lawsuits - Decrypt

Genesis Hits Parent Company DCG With $600 Million Lawsuits – Decrypt

Time Stamp: September 6, 2023 6:06 PM
Genesis Hits Parent Company DCG With $600 Million Lawsuits - Decrypt PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Collapsed crypto company Genesis Global on Wednesday filed two lawsuits against Digital Currency Group (DCG) and Digital Currency Group International (DCGI) demanding the repayment of over $600 million in loans—including over $115 million in Bitcoin. 

DCG is the parent company of Genesis, a lender that halted withdrawals in November following the crash of crypto exchange FTX. 

In Wednesday’s legal actions, filed in the United States bankruptcy court of the Southern District of New York, Genesis Global alleged that two loans—which total around $620 million—have not been repaid. The company said that the loans matured in May and include about 4,550 Bitcoin.

The lawsuit is also trying to recover accrued interest and late fees.

Genesis Global went bust in January—shortly after it had laid off 30% of its staff. The lender was one of many crypto companies hit hard by the collapse of digital asset megabrand FTX, which failed spectacularly in November of last year.

Genesis was in trouble because it served as the primary lending partner of New York-based crypto exchange Gemini. After going bust, it owed users of the high-yield savings product Gemini Earn $900 million.

Just last month, DCG said it had reached an in-principle agreement with Genesis Global’s creditors to resolve the claims that emerged during Genesis’ bankruptcy, with the aim of achieving a fair recovery for creditors.

New York-based Genesis Global Trading—a Genesis-linked company—yesterday announced it would wind down its spot trading crypto trading service next month for “business reasons.” The company offers over-the-counter market-making services in crypto.

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