Genesis sues parent company DCG and another subsidiary for $600 million loans, then suspends suit
DCG borrowed $500,000 from its subsidiary last year, and DCG Investments borrowed over 18,000 BTC. Both would have been lacking.
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Bankrupt cryptocurrency lender Genesis Global Capital (GGC) filed two lawsuits on September 6 seeking repayment of delinquent loans from affiliates. The loans are worth more than $600 million in total.
GGC has filed suits against Digital Currency Group (DCG) and DCG International Investments (DCIG) in the bankruptcy court for the Southern District of New York. Both GGC and DCGI are owned by DCG.
According to the complaint against DCGI, GGC loaned it 18,697.7 Bitcoin (BTC) in June 2022 under an open loan agreement entered into in 2019. The outstanding balance of the loan was converted in November into a fixed-term loan maturing on May 11. , 2023. The loan has been partially repaid and a balance of 4,550.5 BTC remains.
The Genesis suit against DCG. Source: PACERDCIG sent request to GGC on May 9 to convert debt to open loan. GGC did not agree to this, but the balance has not been paid. GGC demands repayment of the loan with interest and late fees.
The parties underwent mediation which ended in August but continue to negotiate, the complaint states. As of this writing, 4,550.5 BTC is worth approximately $116,875,000.
Related: Digital Currency Group Files Motion to Dismiss Gemini Lawsuit, Claiming It's a PR Campaign
According to the other complaint, GGC made four loans to DCG in 2022, worth a total of $500 million. These loans matured on May 11 and 13, 2023. The DCG expressed on May 9 that it was also able to convert these loans to open loans under prior agreement, but the GGC did not accepted.
Genesis files a complaint against the DCG, Barry Silvert, grayscale photo...
DCG borrowed $500,000 from its subsidiary last year, and DCG Investments borrowed over 18,000 BTC. Both would have been lacking.
News
Join us on social networks
Bankrupt cryptocurrency lender Genesis Global Capital (GGC) filed two lawsuits on September 6 seeking repayment of delinquent loans from affiliates. The loans are worth more than $600 million in total.
GGC has filed suits against Digital Currency Group (DCG) and DCG International Investments (DCIG) in the bankruptcy court for the Southern District of New York. Both GGC and DCGI are owned by DCG.
According to the complaint against DCGI, GGC loaned it 18,697.7 Bitcoin (BTC) in June 2022 under an open loan agreement entered into in 2019. The outstanding balance of the loan was converted in November into a fixed-term loan maturing on May 11. , 2023. The loan has been partially repaid and a balance of 4,550.5 BTC remains.
The Genesis suit against DCG. Source: PACERDCIG sent request to GGC on May 9 to convert debt to open loan. GGC did not agree to this, but the balance has not been paid. GGC demands repayment of the loan with interest and late fees.
The parties underwent mediation which ended in August but continue to negotiate, the complaint states. As of this writing, 4,550.5 BTC is worth approximately $116,875,000.
Related: Digital Currency Group Files Motion to Dismiss Gemini Lawsuit, Claiming It's a PR Campaign
According to the other complaint, GGC made four loans to DCG in 2022, worth a total of $500 million. These loans matured on May 11 and 13, 2023. The DCG expressed on May 9 that it was also able to convert these loans to open loans under prior agreement, but the GGC did not accepted.
Genesis files a complaint against the DCG, Barry Silvert, grayscale photo...
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