Digital Currency Group (DCG) Completes $700 Loan Repayment To Genesis Exchange

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Enterprise capital agency Digital Foreign money Group (DCG) has accomplished a $700 million fee to its subsidiary firm Genesis World Capital (GGC) as a settlement of its short-term loans from the now-bankrupt crypto lending platform. This improvement comes 4 months after Genesis filed a lawsuit in opposition to DCG and one of many firm’s associates relating to the reimbursement of overdue loans.

DCG Clears $1 Billion Debt Amidst Crypto Headwinds

Based on a press release on January 5, Digital Foreign money Group said it has now cleared over $1 billion in debt within the final 12 months, together with a full mortgage reimbursement of $700 million to Genesis. Commenting on this improvement, the corporate’s CEO, Barry Silbert, has expressed a lot reduction on X as he claims the enterprise agency confronted vital obstacles in reaching such a feat.

Silbert stated:

I’m joyful to share that @DCGco accomplished a full paydown of the cash borrowed from Genesis. We’ve got now repaid over $1 bn of debt, together with this ~$700 mm, regardless of the headwinds confronted by the trade. I’m excited concerning the trade’s subsequent chapter and DCG’s management function in it.

DCG’s mortgage reimbursement to Genesis is especially vital as a result of relationship between each firms, a earlier lawsuit, and the chapter standing of GGC.

In September 2023, Genesis charged DCG to courtroom over non-payment of 4 loans valued at $500 million. The defunct lender had additionally launched a separate lawsuit seeking to recuperate 4,550 Bitcoin, value $117 million, from DCG-affiliated firm Digital Foreign money Group Worldwide Investments (DCIG).

Following negotiations between each events, DCG agreed on a reimbursement construction with Genesis in November to pay a direct quantity of $200 million. The reimbursement firm additionally made a promise to have cleared all excellent loans by April 2024 because it has now achieved.

DCG Retains Possession Stake In Genesis

In different information, Digital Foreign money Group may also preserve its present possession stake in Genesis till the finalization of the crypto lender’s chapter course of. Based on a courtroom order, Digital Foreign money Group holding its possession shares in Genesis at 80% or above will enable the corporate to stay inside DCG’s tax-consolidated group.

This association protects Genesis in opposition to potential federal web working loss carryforward (NOLs) of $700 million. These potential tax financial savings are essential to Genesis’s monetary place because the crypto agency navigates by way of its chapter proceedings.

Genesis filed for Chapter 11 chapter in January 2023 following losses from the collapses of the FTX trade and Three Arrows Capital. The corporate owes over $3.5 billion to quite a few collectors, most notably the Gemini trade.