Genesis And DCG Strike Repayment Deal – Crypto News – Crypto News
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Genesis And DCG Strike Repayment Deal Genesis And DCG Strike Repayment Deal

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Genesis And DCG Strike Repayment Deal – Crypto News

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3 years ago

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The legal battle between Genesis and its parent company, DCG – which also owns multiple other crypto-related ventures, seems to be coming to an end.

Yesterday, a deal was struck that would put to rest a lawsuit worth $630 million between the two companies.

Some Sums Forfeited

Earlier this year, the Winklevoss Twins’ – whose platform Gemini is also involved in the situation due to their partnership with Genesis in the DeFi sector – stated that DCG owed Gemini about $1.2 billion, double the sum that is disputed between Genesis and its parent firm.

Meanwhile, Genesis has filed a separate lawsuit against Gemini, signaling a breakdown in cordial relations between the former partners.

In any case, the current lawsuit only regards about half of the amount. A further $10 million, representing proceeds from the sale of CoinDesk and other fees, will also not be repaid, bringing the total sum to be repaid down to $620 million.

“As of November 27, 2023, DCG or DCGI have paid or transferred a total of approximately $227.3 million in USD and BTC pursuant to the Original Partial Repayment Agreement, plus approximately $35 million Loan Fees and Late Fees since the default in May 2023. […] Under the terms of the Amendment, the DCG Parties agreed to a modified repayment schedule with an upfront payment of $35,000,000 and continuing monthly payments to GGC; a waiver of the $10 million hold back with respect to the CoinDesk sale proceeds that had been included in the Original Partial Repayment Agreement; and the removal of the Forbearance Fee Crediting Provision.”

Furthermore, DCG will have to pledge some Grayscale Ethereum Trust and Grayscale Ethereum Classic Trust shares to seal the deal, likely owing to previous missed repayments from Genesis’ parent company.

In return, Genesis will abstain from executing on previous consent judgments unless DCG defaults.

Next Steps

Assuming DCG sticks to the proposed plan, the remaining debt of $324.5 million should be repaid by April, with the first tranche of $35 million to be paid in the coming days. Genesis’ creditor committee will also submit the repayment plan to a vote, after which the document will land on Judge Sean Lean’s desk for a final decision.

This unfortunate chapter of Genesis’ bankruptcy dealings should soon be over if all goes well. DCG also has to deal with other lawsuits by regulatory bodies and has recently agreed to pay FTX $175 million following a ruling by the SDNY.

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