DCG Seeks To Raise New Funds To Pay Genesis Debts
- Digital Currency Group (DCG) has reassured the community about the company’s situation and the debt that needs to be paid to Genesis in May.
- Outstanding liabilities might be loans, receivables, or other payments owed by the two companies.
Digital Currency Group (DCG) has issued the latest updates in light of the crypto community’s suspicions regarding the company’s status and debt with Genesis.
DCG said on Tuesday that it is attempting to restructure outstanding commitments with its collapse lending segment Genesis and obtain expansion capital.
Outstanding liabilities might be loans, receivables, or other payments owed by the two businesses.
Genesis is a cryptocurrency loan organization that has been in a liquidity crisis since the November 2022 meltdown of the FTX market. Genesis had to declare bankruptcy in January of this year, revealing that it owed over $900 million to Gemini consumers.
According to the lending platform’s January bankruptcy papers, DCG’s total debt to Genesis includes $575 million due this month and a $1.1 billion promissory note due in June 2032. DCG may have borrowed $500 million in cash and up to $100 million in Bitcoin (BTC) from Genesis in February.
But, since the Digital Currency Group also incurred significant losses in the previous year, the crypto community is doubtful of DCG’s capacity to repay, which, if not, increases the likelihood of another catastrophe.
Genesis abruptly stated at the end of April that the debt restructuring deal between the firm and its creditors was in jeopardy due to shifting circumstances.
In the most recent report, DCG said that it would continue to communicate with Genesis creditors for 30 days beginning May 1 in order to identify a common voice amongst the parties.
Moreover, Digital Currency Group is in talks with capital providers about raising funds for internal purposes, as well as negotiating an extension or modification in loan terms with Genesis. The company is likewise dedicated to reaching a fair settlement for all parties and wants to do so within the time frame specified above.
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