DCG misses $630 million payment due earlier this month, says Gemini

Digital Currency Group missed a $630 million payment it was meant to shell out to its subsidiary Genesis Global Capital earlier this month, according to a May 19 update to clients shared by crypto exchange Gemini. 

A creditor to Barry Silbert’s DCG, Gemini said that it is currently working with Genesis and other creditor groups to provide forbearance to DCG to avoid a default. 

DCG — one of the several victims of the credit crisis that swept crypto in 2022 — has been in negotiations with creditors of Genesis Capital, which filed for bankruptcy protection in January. Gemini, which lent customer funds to Genesis as part of its retail high-yield Earn program, has threatened to file a lawsuit against Silbert and DCG.

In total, DCG’s Genesis owes Gemini $900 million. At the beginning of May, Gemini said that DCG was at risk of default if a $630 million debt payment was not made to Genesis’s bankruptcy estate

In Gemini’s latest update, the firm says that if a deal can’t be reached then it will work with Genesis to “to suggest terms for an amended plan of reorganization that could be advanced without DCG’s consensual participation.”

Gemini filed a motion with the bankruptcy court to propose a new reorganization plan which would not require the approval of DCG. 

As per DCG’s last update, the firm is currently in discussions with “capital providers for growth capital and to refinance its outstanding inter company obligations with Genesis.”

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