Genesis Global Capital sues DCG and DCGI, demanding repayment of over $600 million in loans.

Genesis Global Capital sues DCG and DCGI, seeking repayment of $600 million+ loans.

Author: Nikhilesh De, CoinDesk; Translation: Song Xue, LianGuai

Genesis Global Capital has filed a lawsuit against Digital Currency Group (DCG) and Digital Currency Group International (DCGI), seeking repayment of loans totaling over $600 million.

According to two documents filed on Thursday, DCG borrowed up to $500 million from Genesis in four different loans in 2022, while DCGI borrowed 18,697.7 BTC in 2019. DCG and Genesis signed a master loan agreement on November 10th of last year, with each loan agreement having a deferred or normal maturity date in 2023 on May 9th or 10th. DCGI also signed a master loan agreement with Genesis on June 21st, 2019, with a similar deferred maturity date in 2023. Genesis and DCGI are both subsidiaries of DCG, which is also the parent company of CoinDesk.

In the documents submitted by Genesis in January, which filed for bankruptcy, Genesis claimed that DCG and DCGI “wrongfully possess” the bankruptcy assets of Genesis Global Capital. The documents state that these loans were due and payable in May of this year, but DCG appears to want to convert these loans into “public loans” and sent notice to Genesis on May 9th. However, the former cryptocurrency lending institution claims that Genesis does not agree with this conversion and reserves the right to recover the loans.

“DCG’s request for wire transfer instructions to be paid on May 9, 2023, at 10:37 pm Eastern Time does not constitute a ‘timely’ request as contemplated in the DCG MLA,” the documents submitted by DCG state. “Due to the provisions of Section II (c) (i) of the ‘DCG MLA’, GGC shall provide wire transfer instructions no later than the day before the given loan maturity date upon DCG’s request for wire transfer instructions, and therefore DCG’s request on May 9th does not constitute timely notice regarding the loan due on May 9th or May 10th (given that the request was made on the loan due date of May 9th, rather than prior to that date) (and no later than 90 minutes before midnight on May 10th, the day before the loan maturity date).

According to the two documents, as of Wednesday, DCG owes Genesis $500 million, while DCGI owes 4,550.5 BTC (worth approximately $117 million at the time of writing). Genesis is also seeking late fees and accrued interest, claiming that these funds are “property that the debtor can use in its ongoing bankruptcy case.”

A spokesperson for DCG stated in a statement, “Genesis has agreed to stay its action so that we can continue to memorialize the principles agreed to with Genesis, the UCC, and DCG. We are documenting a stipulation and expect to file with the court soon. At that time, we will initiate the distribution of funds and continue to pursue significant recoveries for Genesis creditors.”

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

0.32 dollars to buy 40 bitcoins: the currency exchange will not work hard, the regular army will come

Summary Event: On August 23, the Amazon AWS cloud service failed, causing many currency exchanges such as the currenc...

Blockchain

FTX on the Brink of Bankruptcy: Decisions Await!

Fashionista, get the scoop on FTX's post-bankruptcy plans as they weigh options for a potential sale or partnership.

Blockchain

Inside story How FTX stays up all night to prevent a $1 billion cryptocurrency theft case

On the same day FTX announced bankruptcy, someone began stealing hundreds of millions of dollars from its vault. An i...

Blockchain

Intercontinental Exchange CEO: The bear market will boost the implementation of the Bakkt Bitcoin futures program

According to Coindesk's May 3 report, an executive at Bakkt's parent company on the Bitcoin Futures Exchang...

Market

Exclusive Interview with Yuga Labs We are more like Tencent of Web3, constantly changing the rules of NFT games

During the Token2049 conference, BlockBeats reporter had a conversation with Daniel Alegre, the CEO of Yuga Labs, dis...

News

Policy reshuffle is intensified: the crisis and new life of virtual currency exchanges

The virtual currency exchange industry may have to "change the sky", which seems to be the consensus of the...