HomeNews$600 Million Crypto Legal Battle: Genesis Global Capital vs. Digital Currency Group

$600 Million Crypto Legal Battle: Genesis Global Capital vs. Digital Currency Group

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  • Genesis Global Capital has taken legal action against the Digital Currency Group (DCG) and its international wing, demanding reimbursement of loans amounting to over $600 million.
  • DCG reportedly owes Genesis $500 million from 2022 loans, and its international affiliate is indebted with 4,550 BTC.

When Titans Clash: The Genesis-DCG $600M Loan Saga

In a dramatic move last Thursday, Genesis Global Capital took the judicial route against both Digital Currency Group (DCG) and Digital Currency Group International (DCGI) to claim unpaid loans that sum up beyond the $600 million mark.

Genesis’s legal documents shed light on the financial intricacies. DCG is alleged to have borrowed an impressive $500 million via four distinct loan transactions from Genesis in 2022. Simultaneously, DCGI’s 2019 borrowing spree resulted in a debt of 18,697.7 BTC. Delving into the agreement specifics, both DCG and Genesis inked master loan accords on November 10th of the prior year, and every loan from 2022 had its maturity due either on May 9th or 10th, 2023. DCGI, on the other hand, committed to its master loan agreement with Genesis on June 21, 2019, sharing the 2023 maturity date.

For context, both Genesis and DCGI are branches of the overarching DCG entity, a powerhouse in the blockchain realm and CoinDesk’s overseeing organization.

January 2023 witnessed Genesis’s unfortunate descent into bankruptcy. Yet, in a twist, this week’s legal proceedings from Genesis articulate that DCG and its international branch have unjustly retained assets that righteously belong to the bankrupted Genesis Global Capital.

Loan Conversions and Repayment Tussles

The loans’ maturity clock ticked its last in May. However, DCG, in an unforeseen move, expressed intentions to morph these loans into ‘Open Loans,’ notifying Genesis of this intent. Genesis stood firm, rejecting such a transition, emphasizing its right to full repayment. A key contention arose from DCG’s late-hour request on May 9th for loan repayment instructions, which Genesis claims did not fit the ‘timely’ criterion stipulated in the Master Loan Agreement (MLA).

Current records indicate DCG’s outstanding amount towards Genesis to be $500 million. Additionally, DCGI’s liability stands at 4,550.5 BTC, which, at current valuation, touches approximately $117 million. Beyond the principal, Genesis has its eyes set on late charges and the interest accrued, positing these as assets crucial to its ongoing bankruptcy undertakings.

DCG, when approached for a comment, relayed through their spokesperson that a mutual agreement is in the works, emphasizing their commitment to

“significant recovery for Genesis creditors.”

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AnnJoy Makena
AnnJoy Makenahttps://www.ethnews.com
Annjoy Makena is an accomplished and passionate writer who specializes in the fascinating world of cryptocurrencies. With a profound understanding of blockchain technology and its implications, she is dedicated to demystifying complex concepts and delivering valuable insights to her readers. Business Email: info@ethnews.com Phone: +49 160 92211628