DCG Offsets its Short-term Loans With Genesis

Venture capital firm Digital Currency Group (DCG) announced that it has successfully serviced all of its short-term loans that were due to now-defunct cryptocurrency broker Genesis.

The company paid about $700 million to Genesis and this brought the total funds paid to creditors in the past year to $1 billion. As such, DCG is up-to-date on its financial obligations to its creditors.

“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,” per a statement released on Saturday.

Silbert Applauds Short-term Loan Repayment 

Barry Silbert, DCG’s CEO who recently announced his resignation from Grayscale’s board of directors, expressed his excitement about the milestone. He acknowledged that the crypto conglomerate was able to fulfil the debt commitment amidst the current challenges faced by the broad crypto market.  

Noteworthy, this development comes only a few months after DCG agreed to pay all Genesis’ outstanding loans before April 2024.

Genesis Files For Bankruptcy Protection 

It became tough for Genesis when Sam Bankman-Fried resigned and FTX filed for Chapter 11 bankruptcy protection in a United States court. After suspending lending and withdrawal activities on its platform, DCG took on Genesis’s debt which was around $1 billion. Also, Genesis had some troubles with Winklevoss brothers Gemini in 2022 over the latter’s Earn program.

The company ended up filing for bankruptcy protection in January 2023. At that time, TheCoinRise reported the renowned crypto brokerage company owes 50 top creditors a total sum amounting to over $3.5 billion.

Gemini Accused DCG of Gaslighting Genesis Creditors 

DCG made the effort to clear these loans to silence the accusations and lawsuits brought upon it by cryptocurrency exchange Gemini Trust Company. In September 2023, Gemini’s legal team accused DCG of using manipulative tactics aimed at gaslighting Genesis creditors via a recovery plan filed with contrived, misleading, and inaccurate assertions.

Gemini claimed that the so-called tactics was just DCG’s way of avoiding the responsibility of paying the over $600 billion in long-overdue debts it owes to Genesis. With this debt out of the way, Gemini may not have any other basis for its allegations. Genesis still has to fulfil its commitment to other creditors.