📰 Yello Paradisers!
Genesis Global Capital (GGC), a cryptocurrency lending unit that filed for Chapter 11 bankruptcy earlier this year, has initiated legal action against its parent company, Digital Currency Group (DCG). The lawsuit revolves around the repayment of over $610 million in matured loans.
📰Background
The dispute traces back to a “master loan agreement” from 2019 between Genesis and DCG. Genesis alleges that it lent over 18,000 bitcoins to DCG in 2022, converting this into a fixed-term loan.
📰Legal Claims
Genesis is seeking to recover $500 million from DCG through four loans and an additional 4,550 bitcoins (valued at around $117 million) from DCG’s affiliate, Digital Currency Group International, under a fifth loan.
📰DCG’s Response
DCG has expressed its intention to file a settlement with the bankruptcy court soon, aiming for a “significant recovery for Genesis creditors.”
📰Industry Impact
DCG is a major player in the crypto industry, owning CoinDesk and Grayscale. Unlike Genesis, DCG has not filed for bankruptcy despite the ongoing legal battle.
📰Previous Troubles
Genesis had previously lent substantial amounts to hedge funds Three Arrows Capital and Alameda Research, both of which filed for bankruptcy in 2022.
📰Final Thoughts
This lawsuit adds another layer of complexity to the already volatile cryptocurrency lending space and could set a precedent for future legal battles within the industry.
📰 ParadiseTeam🌴
