Controversy Arises as Genesis Creditors Challenge DCG’s Claim of Full Debt Repayment
Digital Currency Group (DCG) is facing allegations from an ad hoc group of lenders, claiming that DCG has not fulfilled its repayment requirements to its bankrupt subsidiary, Genesis Global.
Despite DCG’s recent announcement on X that it had fully repaid short-term loans from Genesis, the lenders assert that DCG entities still owe significant sums in both USD and BTC. Genesis and other debtors claim that DCG owes an undetermined amount of bitcoin, along with $26 million in interest and late fees, as specified in the repayment agreement and master loan agreements.
The lenders allege that DCG transferred $189 million in US dollars, along with the relinquishment of certain ETHE (Grayscale Ethereum Trust) shares and illiquid ETCG (Grayscale Ethereum Classic Trust) shares, purportedly to settle its BTC obligations.
1/ On January 5th, 2024, @DCGco (and @BarrySilbert) triumphantly announced it had *finally* paid off a loan due in May 2023 to its child company Genesis (now in bankruptcy).
This announcement follows a pattern of deception used by Barry and DCG for over a year.
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