Tags: Digital Currency Group

The recently amended lawsuit by NYAG claimed that investors were cheated out of $3 billion.

Genesis Global Trading Settles with NYDFS, Pays $8 Million Penalty, and Surrenders BitLicense

Controversy Arises as Genesis Creditors Challenge DCG’s Claim of Full Debt Repayment

Former DCG Advisor Larry Summers Named Among Academics Linked to Epstein List

Digital Currency Group has Settled Over $1 Billion in Debt, Including $700 Million Owed to Bankrupt Genesis

Digital Currency Group has over $320 million left to repay, according to Genesis, and the deal would see that remaining sum repaid by April next year.

CoinDesk was owned by the Digital Currency Group, which acquired the media company in 2016 for $500,000. Its new owner is headed by former New York Stock Exchange president Tom Farley.

Genesis is seeking court approval for a settlement with 3AC, proposing a reduced claim.

Genesis wants to use the shares’ initial value in claims and is not releasing additional collateral transferred by DCG, the suit claims.

A filing from New York Attorney General Letitia James alleges that the cryptocurrency companies defrauded investors of over $1 billion.

Gemini Reportedly Withdrew $280 Million From Genesis Before Crypto Lender Filed for Bankruptcy

Lawyers representing Gemini Trust filed a response in bankruptcy court to Digital Currency Group‘s plan claiming to offer unsecured creditors a "70–90 recovery".

In January, Genesis Global Capital announced it would eliminate its crypto spot trading services “voluntarily and for business reasons” without additional details.

According to DCG, Gemini Earn users have the potential to recover anywhere from 95% to 110% of their assets

Gemini Earn Users Could Recover Almost All Assets as Part of New Agreement – Here’s the Latest

DCG suggests a new deal in Genesis bankruptcy, offering unsecured creditors 70–90 baseline recovery; if approved, it would involve the renegotiation of a $630-million loan between Genesis and DCG.

The internal financial dealings of both DCG and its Genesis Global Capital subsidiary are being reviewed by US federal officials. 

Genesis Sues Parent Firm DCG Over $600 Million Loan Repayment

DCG borrowed $500,000 from its subsidiary last year and DCG Investments borrowed over 18,000 BTC and both have allegedly defaulted.

The company, an affiliate of Barry Silbert’s Digital Currency Group, has been providing crypto spot trading since 2013. Its closure is “for business reasons.”

The agreement in-principle reached by DCG and creditors also said that the Ad Hoc Group and Gemini did not support the deal.