Legal Resolution Unveiled: Court Papers Detail Bankruptcy Agreement Between Digital Currency Group and Genesis Global
Digital Currency Group (DCG) and its subsidiary Genesis Global have reached a resolution in their legal dispute. As disclosed in a recent filing with the US Bankruptcy Court for the Southern District of New York.
Genesis had filed a lawsuit in September seeking to recover $627 million in loans from DCG and its affiliate DCIG. Although a partial repayment agreement was initially reached. Only $227.3 million has been paid to date. Instead of opting for a protracted legal battle. Both parties renegotiated and executed an amended deal on November 28th. The new agreement outlines a modified repayment schedule, including $35 million in upfront payments and monthly installments, aiming to settle the balance by April 1st of the following year.
To secure their obligations, DCG and DCIG will leverage Grayscale Ethereum Trust and Grayscale Ethereum Classic Trust shares. This strategic move is designed to provide immediate benefits to Genesis Global and its creditors without the complexities and costs associated with litigation. Notably, DCG and its CEO Barry Silbert are also confronting complaints from Gemini, a former business partner of Genesis, due to the lender defaulting on loans for Gemini Earn users.
Clever Robot News Desk 1st December 2023
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