Genesis Global Capital Files Lawsuits Seeking Repayment of Over $600 Million in Overdue Loans
Summary:
Genesis Global Capital (GGC) has filed lawsuits seeking repayment of over $600 million in overdue loans from Digital Currency Group (DCG) and DCG International Investments (DCIG). GGC loaned Bitcoin (BTC) to DCGI which was partially repaid, leaving a balance. Negotiations are ongoing, and GGC declared bankruptcy earlier this year. GGC owes $3.5 billion to its top creditors. DCG has reached an agreement with GGC's unsecured creditors, but not all parties support it.
Cryptocurrency lender Genesis Global Capital (GGC) has filed two lawsuits seeking repayment of overdue loans totaling over $600 million from affiliated companies. The complaints were filed against Digital Currency Group (DCG) and DCG International Investments (DCIG) in the Southern District of New York Bankruptcy Court. GGC loaned 18,697.7 Bitcoins (BTC) to DCGI in June 2022, which was partially repaid, leaving a balance of 4,550.5 BTC. However, DCGI requested to convert the debt back into an open loan, which GGC did not agree to. GGC is demanding repayment of the loan along with interest and late fees. The parties have undergone mediation but are continuing negotiations. The outstanding balance of 4,550.5 BTC is currently valued at approximately $116,875,000. GGC also made four loans to DCG in 2022 totaling $500 million, which are set to mature in May 2023. DCG expressed the view that these loans could be converted to open loans, but GGC disagreed. GGC declared bankruptcy in January and owes $3.5 billion to its top 50 creditors. DCG has reached an agreement in principle with GGC's unsecured creditors, which would return 70-90% of the owed amounts. However, the agreement is not supported by the ad hoc creditors' committee and cryptocurrency exchange Gemini.
Published At
9/6/2023 9:03:28 PM
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