The insolvent cryptocurrency lender, Genesis, has reached an agreement with Digital Currency Group (DCG), its parent firm, to settle their $620 million lawsuit.
A court document dated November 28 states that DCG settled part of the issue by pledging to reimburse $324.5 million by April 2024. By entering into this arrangement, Genesis is able to avoid the significant expenses and disruptions associated with protracted litigation.
According to court filings, Genesis is free to seek the collection of any outstanding debt in the event that DCG defaults on this arrangement.
Genesis Makes Strides In Bankruptcy Proceedings
Amidst its ongoing bankruptcy procedures, Genesis filed a complaint against DCG in September, alleging improper possession of approximately $620 million in loans and demanding repayment, interest, and fees. Of the $620 million it owes, DCG has paid about $227.3 million so far.
This action, subject to Judge Sean Lean’s approval and the creditors’ vote, represents a significant milestone in Genesis’ efforts to pay back creditors. Genesis attempted to downsize its claim from $1 billion to $33 million against Three Arrows Capital in order to emphasize a more comprehensive reorganization plan.
Both businesses decided to settle Genesis’s bankruptcy claims in August, with DCG agreeing to swap its current $630 million…
