10 months ago, we started talking about Genesis bankruptcy as one of the hottest topics of 2023. And it happened as expected. In 2023, Genesis officially declared bankruptcy, and the largest lender in the crypto world gave up. Now, the parent company DCG is facing the risk of bankruptcy, despite Grayscale’s recent victory. Today, a new lawsuit has been filed.
Crypto Currencies Breaking News
Genesis Global Capital has filed a lawsuit against Digital Currency Group (DCG) and Digital Currency Group International (DCGI) demanding over $600 million in debt. The recent application claims that DCG borrowed up to $500 million from Genesis in four different credits in 2022, and DCGI borrowed 18,697.7 BTC in 2019. DCG and Genesis signed the main credit agreements on November 10th last year, and the extended or normal maturity date for each of these 2022 credits was May 9th or 10th, 2023.
DCGI signed a main credit agreement with Genesis on June 21, 2019, which also has an extended maturity date in 2023. This development, announced by CoinDesk, one of DCG’s subsidiaries, raises the possibility of DCG also going bankrupt if it cannot make the payment. If DCG, which is currently the parent company of many billion-dollar crypto brands, goes bankrupt, it could have even bigger consequences than the FTX crash.
