Digital Currency Group (DCG) completed all its short-term loans to Genesis. In an announcement, DCG said it repaid the crypto broker a $700 million loan.
Digital Currency Group announced Friday that it settled its debts with crypto lending platform Genesis. DCG said it was now current with its financial obligations and paid over $1 billion to creditors in the past year.
All Obligations Satisfied
In a January 6 statement on X, DCG confirmed it is up to date with its creditor repayments. The venture capital firm said it paid over $1 billion to creditors last year. The statement reads:
“DCG is pleased to announce that we have completed a payoff of all short-term loans from Genesis. In total, DCG has paid off more than $1 billion of debt to its creditors in just over a year, including nearly $700 million to Genesis, satisfying all obligations currently due. With this milestone behind us, we’re looking forward to the next chapter of DCG and the future growth of our industry.”
The announcement came after Genesis struck a deal with its parent company, DCG, to end the longstanding legal battle between the companies. In a bankruptcy filing submitted in November, DCG and Genesis Global outlined a repayment plan. The companies have been embroiled in a legal battle as Genesis sought a $620 million repayment from its parent company.
Barry Silbert, CEO of DCG, commented on X to highlight that the debt commitments have been paid despite the ongoing challenge in the crypto market in 2023. In his post, Silbert said,
“I’m happy to share that @DCGco completed a full pay down of the money borrowed from Genesis. We have now repaid over $1 bn of debt, including this ~$700 mm, despite the headwinds faced by the industry. I’m excited about the industry’s next chapter and DCG’s leadership role in it.”
Resolution After Drawn Out Legal Battle
In its Q4 2022 investor report, DCG reported losses worth over $1 billion as a direct result of the aftermath of the collapse of Three Arrows Capital in 2022 and further trouble related to the collapse of FTX. Genesis provided DCG with four loans totalling $500 million, all maturing in May 2023, which DCG could not repay. Genesis filed for Chapter 11 bankruptcy in January 2023 following liquidity issues related to 3AC and FTX, which forced the company to halt withdrawals.
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Source: https://cryptodaily.co.uk/2024/01/digital-currency-group-dcg-pays-off-700-million-debt-to-genesis