Genesis Global, a crypto lending giant, has recently reached a new repayment deal agreement with its parent company Digital Currency Group (DCG). According to a Bloomberg report, DCG has agreed to pay nearly $200 million in Bitcoin (BTC) and U.S. dollars to Genesis over the coming weeks, with another sum due in April 2024. This agreement would allow Genesis to avoid months of costly legal battles, however, other disputes remain unresolved.
This settlement follows a lawsuit filed by Genesis against DCG in the summer of 2023, claiming $620 million in unpaid loans. The crypto firm then presented a repayment proposal of $1.4 billion in an attempt to settle its debts. While some of its customers supported the plan, other creditors were not convinced.
At the same time, Genesis and DCG are being investigated by the New York Attorney General Letitia James, who has accused them of a $1 billion fraud scheme. The lawsuit claims that Gemini Trust, Genesis Capital, and DCG misled customers about the risks associated with its Gemini Earn program, which offered investors up to 8% returns for lending their crypto to Genesis Capital.
