<\/p>\n
Bankrupt lender Genesis claims that Digital Currency Group owes roughly $500 million in loans, while DCG International owes roughly 4,550 bitcoin, worth around $116 million at the time of publication.<\/p>\n
In filings filed on Wednesday, Genesis<\/a> claims that DCG<\/a> is \u201cwrongfully in possession of property\u201d that belongs to the GGC estate.\u00a0<\/p>\n The loans, which are divided into three sums of $100 million and one of $200 million, reached maturity back in May of this year.\u00a0<\/p>\n \u201cBecause the DCG Loans were not repaid on their respective Maturity Dates or converted to Open Loans, nor was the termination of any of the Loans suspended, the amounts due to GGC pursuant to the DCG MLA include applicable Late Fees,\u201d Genesis said<\/a>. They added that the late fees will continue to accrue.\u00a0<\/p>\n On May 9, Genesis says that DCG submitted a wire instructions request, expressing a desire to convert the loans into open-ended loans. However, Genesis did not agree and just wishes to be repaid. The filing continues to say that the wire instruction request came in at 10:37 pm ET on May 9, which it did not consider a \u201ctimely request.\u201d<\/p>\n Furthermore, a GGC representative got back to DCG on the wire instructions before midnight.\u00a0<\/p>\n \u201cDCG should be directed to turn over the Principal Amount to the GGC estate,\u201d the filing argues.<\/p>\n \u201cGenesis 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,\u201d a DCG spokesperson told Blockworks via email. \u201cAt that point, we will initiate the distribution of funds and continue on the path to significant recovery for Genesis creditors.\u201d<\/p>\n In a separate filing, Genesis accuses DCG International of not repaying 4,550 bitcoin.<\/p>\n Back in June 2022, Genesis and DCGI agreed to an \u201copen-term loan\u201d of roughly 18,690 bitcoin. DCGI partially repaid the loan, leaving roughly 4,550 bitcoin unpaid.\u00a0<\/p>\n Similarly to DCG, the loan matured back in May and has not been repaid.\u00a0<\/p>\n \u201cOn May 9, 2023, DCGI sent to GGC a request that it \u2018suspend the termination\u2019 of the DCGI Loan, which was due to mature on May 11, 2023, and to reinstitute the DCGI Loan \u2018as an Open Loan (as defined in the MLA) consistent with [GGC and DCGI\u2019s] prior course of dealing.\u201d However, Genesis did not agree to suspend the termination of the loan.<\/p>\n \u201cTherefore, because the outstanding balance under the DCGI Loan was not repaid, it matured on May 11, 2023 and is currently payable,\u201d the filing said.<\/p>\n The DCGI loan has also racked up late fees, according to Genesis.\u00a0<\/p>\n This is not the first loan that matured without DCG paying it back. Gemini claimed in May that DCG<\/a> missed a $630 million payment. Blockworks reported earlier this year<\/a> that Gemini had warned of DCG defaulting.<\/p>\n Updated Sept. 6, 2023 at 5:50 pm ET: Added statement from DCG.<\/em><\/p>\n Get the day\u2019s top crypto news and insights delivered to your email every evening.\u00a0Subscribe to Blockworks\u2019 free newsletter<\/a>\u00a0now.<\/strong><\/p>\n Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can\u2019t-miss tweets and more from\u00a0Blockworks Research\u2019s Daily Debrief<\/a>.<\/strong><\/p>\n Can\u2019t wait? Get our news the fastest way possible.\u00a0Join us on Telegram<\/a>\u00a0and follow us on\u00a0Google News<\/a>.<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Bankrupt lender Genesis claims that Digital Currency Group owes roughly $500 million in loans, while DCG International owes roughly 4,550 bitcoin, worth around $116 million at the time of publication. In filings filed on Wednesday, Genesis claims that DCG is \u201cwrongfully in possession of property\u201d that belongs to the GGC estate.\u00a0 The loans, which are […]<\/p>\n","protected":false},"author":2,"featured_media":151131,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-151130","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/151130","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=151130"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/151130\/revisions"}],"predecessor-version":[{"id":151137,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/151130\/revisions\/151137"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/151131"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=151130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=151130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=151130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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