Genesis Global Capital is suing DCG over several unpaid loans due in May that add up to hundreds of millions of dollars worth of bitcoin.
Digital Currency Group, which owns bankrupt crypto lender Genesis, faced the heat on Wednesday over allegations that it borrowed thousands in bitcoin and hasn’t paid it back.Connect/Create WalletNo wallet? No problem. You can set one up for free. We recommend Torus for first-time users.Genesis Global Capital is suing Digital Currency Group over several unpaid loans due in May that add up to hundreds of millions of dollars.
DCG and Genesis entered into a"master loan agreement" in 2019, lawyers for Genesis said on Wednesday, according to a filing under the U.S. Bankruptcy Court in the Southern District of New York. According to the documents, Genesis said it loaned over 18,000 bitcoin to DCG in 2022 and later that year converted the debt into a a fixed-term loan with a maturity date of May 11.In a separate court document also filed on Wednesday, lawyers representing Genesis said the crypto lender and DCG entered into an"amended and restated master loan agreement" in November 2022.
"Genesis has agreed to stay the turnover action so that we can move forward with documenting the deal in principle that was reached with Genesis, the UCC, and DCG,"We are documenting a forbearance agreement and expect to file it with the court shortly. At that point, we will initiate the distribution of funds and continue on the path to significant recovery for Genesis creditors.
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