Digital Currency Group (DCG) has successfully settled all its short-term loans to Genesis, a crypto lending platform. In a recent announcement, DCG revealed that it repaid a $700 million loan to the crypto broker. The company also stated that it is now current with its financial obligations, having paid over $1 billion to creditors in the past year.
In a statement released on January 6, DCG confirmed that it is up to date with its creditor repayments. The venture capital firm disclosed that it paid over $1 billion to creditors last year. The statement reads: “DCG is pleased to announce that we have completed a payoff of all short-term loans from Genesis. In total, DCG has paid off more than $1 billion of debt to its creditors in just over a year, including nearly $700 million to Genesis, satisfying all obligations currently due. With this milestone behind us, we’re looking forward to the next chapter of DCG and the future growth of our industry.”
This announcement came after Genesis struck a deal with its parent company, DCG, to end a longstanding legal battle between the companies. In a bankruptcy filing submitted in November, DCG and Genesis Global outlined a repayment plan. The companies have been embroiled in a legal battle as Genesis sought a $620 million repayment from its parent company.
Barry Silbert, CEO of DCG, commented on the situation, highlighting that the debt commitments have been paid despite the ongoing challenge in the crypto market in 2023. Silbert said, “I’m happy to share that @DCGco completed a full pay down of the money borrowed from Genesis. We have now repaid over $1 bn of debt, including this ~$700 mm, despite the headwinds faced by the industry. I’m excited about the industry’s next chapter and DCG’s leadership role in it.”
In its Q4 2022 investor report, DCG reported losses worth over $1 billion as a direct result of the aftermath of the collapse of Three Arrows Capital in 2022 and further trouble related to the collapse of FTX. Genesis provided DCG with four loans totalling $500 million, all maturing in May 2023, which DCG could not repay. Genesis filed for Chapter 11 bankruptcy in January 2023 following liquidity issues related to 3AC and FTX, which forced the company to halt withdrawals.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Barry Silbert |
| Companies | Genesis, FTX, Digital Currency Group, Genesis Global, Three Arrows Capital |
| Currencies | None |
| Securities | None |
