Genesis Global Capital has initiated legal action against Digital Currency Group (DCG) and Digital Currency Group International (DCGI) to recover over $600 million in loans. According to court filings, DCG borrowed up to $500 million across four loans from Genesis in 2022, while DCGI borrowed 18,697.7 BTC in 2019. Both Genesis and DCGI are subsidiaries of DCG, the parent company of CoinDesk.
The loans, with maturity dates in May 2023, were not agreed upon for conversion into “Open Loans,” as DCG had suggested. As of the latest update, DCG owes Genesis $500 million, and DCGI owes 4,550.5 BTC (approximately $117 million). Genesis also seeks late fees and accrued interest, considering their assets applicable to its ongoing bankruptcy case.
Genesis alleges that DCG and DCGI are in “wrongful possession of property” belonging to its bankruptcy estate. In response, a DCG spokesperson stated that an agreement in principle had been reached with Genesis, and they are documenting a forbearance agreement. This step will lead to fund distribution and recovery for Genesis creditors.
