DCG Owes More Than $1.65 Billion To Its Subsidiary Genesis Global
- DCG owes Genesis $575 million in a loan due in May of this year, as well as a $1.1 billion promissory note due in June 2032.
- Earlier today, it was revealed that Genesis owed more than $3.5 billion to the top 50 creditors, which included Gemini, Mirana, Decentraland, and others.
Genesis Global and its connected organizations filed for bankruptcy on January 20, revealing that the parent firm Digital Currency Group (DCG) owes its subsidiary Genesis more than $1.65 billion.
DCG owes Genesis $575 million in a loan due in May of this year, as well as a $1.1 billion promissory note due in June 2032. A special committee of the board of directors of GGH, the Genesis entity’s holding company, is looking into financing activities between GGC and DCG to see if the insolvent firm has plausible claims against this firm linked to these transactions that might help with restructuring.
“GGC’s approximately $850 million in unsecured loans to DCG entities, various transactions to restructure $850 million of unsecured loans in November 2022, and DCG’s purported exercise of $52.5 million of the November 2022 offset, the “GGC and DCG Entities” accounting and other purposes processing of the “DCG Notes” and related communications with lenders.”According to the investigation
The filings on Thursday are the latest in a series of high-profile disasters that have rocked the crypto sector in the last year, including the Terra implosion and, more recently, the fall of the FTX crypto exchange.
Genesis became involved with the hedge fund Three Arrows Capital and the crypto exchange FTX, both of which went bankrupt. Genesis was obliged to restrict withdrawals in its lending section shortly after FTX’s Chapter 11 filing in November, a key customer of which was Gemini, the crypto exchange owned by Cameron and Tyler Winklevoss. Since then, CEO Cameron Winklevoss has launched a public campaign against Genesis, DCG, and its CEO, Barry Silbert.
Earlier today, it was revealed that Genesis owed more than $3.5 billion to the top 50 creditors, which included Gemini, Mirana, Decentraland, and others.
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