Digital Currency Group (DCG) and its subsidiary Genesis Global have outlined a repayment plan in a recent bankruptcy filing, aiming to settle an ongoing lawsuit.
DCG has already paid around $227.3 million to Genesis and plans to clear the remaining $324.5 million debt by April through a combination of U.S. dollars and Bitcoin in installments.
An additional $275 million payment is scheduled in three installments, with the deadline set for April, and Grayscale Trust shares are offered as security. While the settlement won’t cover the full debt, it aims to prevent prolonged litigation, playing a key role in Genesis’ strategy to resolve debts amid bankruptcy proceedings.
Genesis, facing legal challenges including a lawsuit against Gemini to recover $670 million, illustrates persistent issues in the crypto lending sector, emphasizing the complexities of managing financial obligations and legal disputes.
The settlement marks a significant step in addressing financial and legal conflicts between Genesis and DCG, providing a pathway to address creditor concerns, streamline bankruptcy proceedings, and highlight the challenges in cryptocurrency industry.
Imag Credit: Shutterstock
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