Digital Currency Group Fully Repaid Its Short-term Debt as of June 2024
Key Points:
- Digital Currency Group has fully repaid its short-term debts as of June 2024, settling over $1 billion in creditor obligations in the past 18 months.
- DCG’s only remaining debt is a $1.1 billion promissory note owed to its bankrupt subsidiary, Genesis, with a maturity date set for 2032.
According to The Block, Digital Currency Group announced that as of June 2024, it had successfully repaid all its short-term debts.
Read more: DCG First Quarter Revenue Hits $229 Million Despite Grayscale’s GBTC Slump
Digital Currency Group Clears Short-Term Debts, Settles Over $1 Billion to Creditors
According to the company’s quarterly shareholder letter, Digital Currency Group settled over $1 billion in creditor obligations over the past 18 months.
The investment giant in blockchain, founded in 2015, has but one remaining liability: a $1.1 billion promissory note due from its bankrupt subsidiary Genesis. This note is due for maturity in 2032.
DCG, Genesis Facing Ongoing Lawsuits, Settlements
These issues occurred in the backdrop of market turmoil in 2022, particularly due to the collapses of hedge fund Three Arrows Capital, or 3AC, and crypto exchange FTX. Genesis had lent out several billion dollars to 3AC when the latter fell through, causing huge losses. To prop up Genesis, DCG infused the firm with cash and issued a $1.1 billion promissory note.
Things turned bad when FTX collapsed in November 2022. From there, things quickly went downhill for Genesis, with the company suspending withdrawals in November 2022 and declaring Chapter 11 bankruptcy in January 2023. Such a move underscored the enormous financial stress on Genesis, which was now accentuated by a wider crypto market crisis.
In October 2023, New York Attorney General Letitia James filed a lawsuit against DCG, Genesis, and other crypto firms in relation to charges of deceptive practices against investors. That case is ongoing after a bankruptcy judge gave the green light for a $2 billion settlement for Genesis in May.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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Digital Currency Group Fully Repaid Its Short-term Debt as of June 2024
Key Points:
- Digital Currency Group has fully repaid its short-term debts as of June 2024, settling over $1 billion in creditor obligations in the past 18 months.
- DCG’s only remaining debt is a $1.1 billion promissory note owed to its bankrupt subsidiary, Genesis, with a maturity date set for 2032.
According to The Block, Digital Currency Group announced that as of June 2024, it had successfully repaid all its short-term debts.
Read more: DCG First Quarter Revenue Hits $229 Million Despite Grayscale’s GBTC Slump
Digital Currency Group Clears Short-Term Debts, Settles Over $1 Billion to Creditors
According to the company’s quarterly shareholder letter, Digital Currency Group settled over $1 billion in creditor obligations over the past 18 months.
The investment giant in blockchain, founded in 2015, has but one remaining liability: a $1.1 billion promissory note due from its bankrupt subsidiary Genesis. This note is due for maturity in 2032.
DCG, Genesis Facing Ongoing Lawsuits, Settlements
These issues occurred in the backdrop of market turmoil in 2022, particularly due to the collapses of hedge fund Three Arrows Capital, or 3AC, and crypto exchange FTX. Genesis had lent out several billion dollars to 3AC when the latter fell through, causing huge losses. To prop up Genesis, DCG infused the firm with cash and issued a $1.1 billion promissory note.
Things turned bad when FTX collapsed in November 2022. From there, things quickly went downhill for Genesis, with the company suspending withdrawals in November 2022 and declaring Chapter 11 bankruptcy in January 2023. Such a move underscored the enormous financial stress on Genesis, which was now accentuated by a wider crypto market crisis.
In October 2023, New York Attorney General Letitia James filed a lawsuit against DCG, Genesis, and other crypto firms in relation to charges of deceptive practices against investors. That case is ongoing after a bankruptcy judge gave the green light for a $2 billion settlement for Genesis in May.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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