Digital Currency Group has Settled Over $1 Billion in Debt, Including $700 Million Owed to Bankrupt Genesis
Digital Currency Group (DCG) has successfully settled over $1 billion in debt, including the substantial amount of nearly $700 million owed to its bankrupt subsidiary, Genesis.
The announcement came from DCG CEO Barry Silbert, who took to the social media platform X to share the news.
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 https://t.co/Jlbu3Zs7Xl
— Barry Silbert (@BarrySilbert) January 5, 2024
The debt settlement process began after Genesis filed a lawsuit against DCG and its affiliate, DCG International Investments (DCIG), in September.
Genesis sought to recover approximately $627 million in loans that had matured in May 2023.
However, in late November, the parties reached an agreement on a repayment schedule, with the aim of settling the outstanding balance by April 2024.
In his post, Silbert said that the firm has fully repaid the funds borrowed from Genesis.
He further highlighted DCG’s overall debt repayment of over $1 billion, despite the challenges faced by the industry.
“I’m excited about the industry’s next chapter and DCG’s leadership role in it.”
DCG released an official statement, affirming that all current obligations have been met as per the settlement agreement.
The troubles faced by Genesis originated in 2022 when Three Arrows Capital, a crypto hedge fund, encountered difficulties, leading to liquidity issues for Genesis.
The subsequent downfall of FTX further compounded Genesis’s challenges, ultimately resulting in the company filing for Chapter 11
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