Genesis Global and Digital Currency Group Settle Legal Dispute

One sentence summary – Digital Currency Group (DCG) and its subsidiary Genesis Global have settled a legal dispute over a $627 million loan, with DCG and its affiliate DCIG having paid $227.3 million to date and agreeing to make upfront payments of $35 million and subsequent monthly installments to fully settle the remaining balance by April 1st, using shares from Grayscale Ethereum Trust and Grayscale Ethereum Classic Trust as collateral.

At a glance

  • Digital Currency Group (DCG) and Genesis Global have settled a legal dispute.
  • Genesis had filed a lawsuit seeking to recover $627 million in loans owed by DCG and DCIG.
  • DCG and DCIG have paid $227.3 million towards the debt.
  • A new agreement has been reached with upfront payments of $35 million and subsequent monthly installments.
  • The goal is to fully settle the remaining balance by April 1st.

The details

Digital Currency Group (DCG) and its subsidiary Genesis Global have reached an agreement to settle a legal dispute.

Genesis had filed a lawsuit in September seeking to recover approximately $627 million in loans owed by DCG and its affiliate DCIG.

To date, DCG and DCIG have paid approximately $227.3 million towards this debt.

Instead of a protracted court battle, Genesis and DCG decided to renegotiate and execute an amended deal on November 28th.

The new agreement outlines specific terms for the settlement.

It requires upfront payments of $35 million and subsequent monthly installments.

The ultimate goal is to fully settle the remaining balance by April 1st.

To secure their obligations, the debtors have chosen to use shares from Grayscale Ethereum Trust and Grayscale Ethereum Classic Trust.

This strategy is intended to provide assurance to both parties involved in the agreement.

Genesis Global determined that this amendment would be more beneficial for the estates involved than terminating the agreement altogether.

This decision reflects a mutual understanding of the benefits and potential consequences for both Genesis and DCG.

DCG and its CEO, Barry Silbert, are also facing complaints from Gemini, a former business partner and cryptocurrency exchange.

These complaints stem from DCG’s default on loans provided to users of Gemini Earn.

By reaching this agreement, Genesis Global and Digital Currency Group have taken a significant step towards resolving their legal dispute.

The amended deal provides a structured framework for repayment.

This ensures that both parties can work towards a satisfactory resolution.

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dailyhodl.com
– Digital Currency Group (DCG) and its bankrupt subsidiary Genesis Global have reached a new agreement to settle a legal battle.
– Genesis filed a lawsuit in September to recover approximately $627 million in loans owed to it by DCG and its affiliate DCIG.
– DCG and DCIG have only paid approximately $227.3 million to date.
– Instead of terminating the agreement and going to court, Genesis and DCG renegotiated and executed an amended deal on November 28th.
The new agreement requires upfront payments of $35 million and monthly installments, with the goal of settling the balance by April 1st.
The debtors will secure their obligations with Grayscale Ethereum Trust and Grayscale Ethereum Classic Trust shares.
The Debtors determined that entering into the amendment would be more beneficial to the estates than terminating it.
– DCG and its CEO Barry Silbert are also facing complaints from Genesis’ former business partner, the crypto exchange Gemini, after defaulting on loans of Gemini Earn users.

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