Sep 7, 2023

Genesis Global Capital filed a suit against Digital Currency Group (DCG) and Digital Currency Group International (DCGI), seeking the repayment of multiple loans with a principal amount of over $600 million.

Video transcript

The State of crypto is presented by Tron connecting the world to the power of Cryptocurrency, bankrupt lender Genesis Global Capital filed a suit against DC G and DC G International seeking the repayment of multiple loans with a principal amount of over $600 million. DC G. Of course, is the parent company of coin desk. Last I checked. Joining us now to discuss is Coindesk global policy and regulation. Managing editor Nick Day, who is also the editor of Coin de State of Crypto newsletter which every child likes to get in their Christmas Stockings. Good morning, Nick. Good morning. So uh walk us through this filing here. What, what, what, what's Genesis claiming? Yeah. So these are a pair of filings from Genesis saying that uh it had entered into loan agreements with DC G and DC G International in uh 2019 and 2022. Uh Basically for um you know, one loan was for uh or one agreement was for four loans worth a total of $500 million US D Getter was worth uh about 18,000 BC. Um this was a DC G International loan and while DC G International has paid off or repaid. You know, most of that Bitcoin, it still owes about 4550 DC G owes about 600 billion these loans matured in May of this year and DC G has not paid them back. Uh, according to the court filings, Nick, last week, DC G reached an in principle deal with Genesis creditors. What does this suit mean for that bankruptcy case going forward? Is there any anything that could happen with that? Well, so the uh filings themselves were posted as part of Genesis bankruptcy. So, um you know, the argument that the uh filing said is these are funds that could be used by Genesis to repay uh creditors. Um So I, I think it's happening, you know, either in addition to or, you know, next to whatever is going on with that in principle agreement. Uh Genesis, obviously, their motivation seems to be to try to try and get back as much of the funds that is owed as possible to repay its creditors or at least pay off as much as possible, those creditors. All right, Nick, thank you for joining and giving us that update this morning. We'll see you tomorrow. That was Coindesk Global Policy and regulation managing editor Nick Day and don't forget to sign up for the state of crypto newsletter on coin desk dot com. Just one last disclosure here, Genesis and uh Coin Desk are both subsidiaries of DC G which is Coin S Sorry, Genesis and DC G I are both subsidiaries of DC G, which is also Coin Desk's parent company.

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