Digital Currency Group struck a new repayment deal with its bankrupt subsidiary, Genesis Global Holdco LLC, as part of an agreement to end a lawsuit that sought roughly $620 million from DCG, Bloomberg News reported. Genesis lawyer Sean O’Neal said during a hearing yesterday that the deal will provide the bankrupt crypto lender with roughly $200 million in value over the next few weeks and requires DCG to complete outstanding payments in April 2024. If DCG defaults, Genesis can try to collect any unpaid amount, according to court papers. The proposed agreement is meant to resolve a lawsuit Genesis brought in September to recover outstanding loans from its parent conpany. DCG, which has been making payments to Genesis since the lawsuit was filed, still owes its subsidiary $324.5 million as of Nov. 28, according to court documents. Genesis said that the agreement will avoid months of costly litigation with its parent company and guarantees that the bankrupt crypto lender will be partially repaid what it’s owed. O’Neal said that the deal doesn’t resolve other disputes with DCG related to Genesis’s plan for resolving its bankruptcy. Genesis is also facing off in court against its former business partner Gemini Trust Co., and the two also face a suit brought against them by the U.S. Securities and Exchange Commission. Meanwhile, New York State has brought legal action against them and DCG.
