It has been revealed the fact that Digital Currency Group has paid off one billion dollars in short-term debt. Check out the latest reports about this below.
Paying off a huge debt
Barry Silbert, CEO of Digital Currency Group (DCG), announced that the venture capital firm has settled a debt of over $1 billion. This amount includes the outstanding debt of almost $700 million owed to Genesis, a bankrupt subsidiary of DCG.
In September, Genesis filed a lawsuit against DCG and its affiliate, DCG International Investments (DCIG), to recover about $627 million in loans that matured in May 2023.
The parties reached an agreement in November, which stipulated a repayment schedule that would settle the balance by April 2024. According to Silbert’s post on the social media platform X, DCG has already paid off all the money owed to Genesis.
“I’m happy to share that DCG completed a full pay down of the money borrowed from Genesis.
We have now repaid over $1 billion of debt, including this ~$700 million, despite the headwinds faced by the industry.
I’m excited about the industry’s next chapter and DCG’s leadership role in it.”
DCG has released a statement, confirming that the company has fulfilled all its present obligations. In 2022, Genesis encountered difficulties when Three Arrows Capital, a crypto hedge fund, went bankrupt, resulting in liquidity problems.
The crypto broker’s challenges were amplified by the collapse of FTX, which led to the company filing for Chapter 11 bankruptcy protection in January 2023.
Not too long ago, we revealed the fact that Genesis was involved in a lawsuit with cryptocurrency exchange Gemini.
The objective of the lawsuit is to recover over $500 million in preferential transfers. Preferential transfers are payments made by an insolvent company to a creditor within 90 days before filing for bankruptcy.
If certain conditions are met, the recipient may be legally obligated to return the funds to ensure that payments to the bankrupt company’s creditors are distributed fairly.
