Digital Currency Group Clears All Debts to Genesis Amid Market Challenges
Summary:
The Digital Currency Group (DCG) has cleared all outstanding financial obligations to the now-dissolved crypto lending entity, Genesis. The repayment was announced via the X platform, with DCG settling debts that included an estimated $700 million paid to Genesis, as part of a larger sum exceeding $1 billion paid to various creditors in the past year. Despite challenging market conditions, DCG was able to clear this debt, which formed part of an agreement with Genesis tied to a previously filed lawsuit.
The Digital Currency Group (DCG) has recently declared that it has cleared all pending financial obligations to the now-dissolved crypto lending entity, Genesis. DCG proclaimed via the X platform (formerly known as Twitter) on January 6, that it had settled all outstanding debts, including the payment of an estimated $700 million to Genesis. This is part of a larger sum exceeding $1 billion paid off to lenders within the last year.
"DCG is proudly announcing the complete pay-down of every short-term loan borrowed from Genesis. Altogether, we have successfully settled over $1 billion in debt in slightly over a year, approximately $700 million of which went to Genesis, thereby fulfilling all currently due obligations," the DCG statement read.
In addition, DCG's CEO, Barry Silbert, emphasized that they managed to meet these financial commitments regardless of the difficult circumstances encountered in the crypto sphere last year. "Over $1 billion worth of debt, including around $700 million, has now been completely repaid, even with the hurdles the industry has had to face," Silbert mentioned.
Furthermore, back in November 2023, as reported by Cointelegraph, Genesis revealed that DCG agreed to settle the remaining $324.5 million loan by April 2024. Also, Genesis holds the right to pursue any unpaid balances under this agreement.
This proposed arrangement aimed to position Genesis to conclude a lawsuit lodged against DCG in September. The lawsuit requested the return of unpaid loans roughly amounting to $620 million. Genesis was forced to file for bankruptcy in January following the halt of withdrawals in November 2022.
Published At
1/6/2024 8:40:39 AM
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