Genesis-DCG Aims to Resolve Lawsuit via Bankruptcy Filing

• Digital Currency Group and Genesis Global Reach Settlement Plan
• Background of the Lawsuit
• Repayment Progress
• Terms of the Settlement
• Implications of the Settlement

Digital Currency Group and Genesis Global Reach Settlement Plan

Digital Currency Group (DCG) together with Genesis Global have developed a repayment strategy, setting the stage for resolving their ongoing legal dispute, as revealed in a recent bankruptcy document.

Background of the Lawsuit

In the month of September, Genesis initiated a lawsuit against DCG. The case revolved around an alleged illegal possession of loans exceeding $620 million by DCG. Genesis demanded not just the return of these loans, but also interest and fees. This was amidst the bankruptcy proceedings Genesis was facing.

Repayment Progress

Approximately $227.3 million of the total amount DCG owes has been paid thus far. The proposed settlement would demand an additional payment of $275 million from DCG to Genesis. This payment would be partitioned into three portions, with the deadline for the final payment being in April of this year.

Terms of the Settlement

The proposed settlement includes a combination of U.S. dollars and bitcoin. Additionally, it involves an upfront payment of $35 million and a $10 million holdback from the recent sale of undisclosed assets. According to the submitted documents, DCG has decided to use Grayscale Trust shares as security.

Implications of the Settlement

The arrangement does not fully cover the debt owed by DCG to Genesis, which stands at a total of $324.5 million. Nevertheless, it will serve to prevent the two companies from entering into protracted and costly legal battles. The completion of this agreement is pending the endorsement of the creditors.

Edited by Jonathan Stoker