Bankrupt crypto lender Genesis and its parent company, Digital Currency Group (DCG), have reached a deal to potentially resolve an ongoing lawsuit. Genesis filed a document with a New York Bankruptcy Court stating that DCG has agreed to repay its outstanding $324.5 million in loans by April of next year. This agreement would allow Genesis to drop the lawsuit it filed against DCG in September, seeking repayment of around $620 million in overdue loans. The repayment deal is seen as a positive development for Genesis, providing immediate benefits and avoiding the costs and resources associated with litigation. The proposed deal will be presented to creditors for a vote before being considered by the bankruptcy judge. In addition to this lawsuit, Genesis has also sued crypto exchange Gemini, seeking to recover nearly $670 million in transfers. Both Genesis and Gemini are facing legal action from the Securities and Exchange Commission and the state of New York, alleging fraud and the sale of unregistered securities. Genesis filed for bankruptcy in January after suspending withdrawals in November 2022.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | None |
| Companies | Securities and Exchange Commission (SEC), New York Bankruptcy Court, Gemini, Three Arrows Capital, Genesis, Digital Currency Group (DCG) |
| Currencies | None |
| Securities | None |
