The bankrupt cryptocurrency lender Genesis and its parent company, Digital Currency Group (DCG), have reached an agreement that might bring an end to the current lawsuit aiming to recover $620 million in payments from DCG.
According to a filing on November 28 to the United States Bankruptcy Court for the Southern District of New York, Genesis reported that DCG has agreed to settle its outstanding $324.5 million in loans by April 2024.
Genesis said the repayment deal will provide it with “immediate significant and near-term benefits” and avoid the “risk, expense, and diversion of resources that would be required by litigation.”
The deal will form part of Genesis’ plans to pay back creditors, who will vote on the plan before it is sent to Judge Sean Lean for a decision, who will consider the creditor’s votes.
DCG and Genesis are also in trouble with their old partner, the Gemini exchange. In July, Gemini sued DCG and Barry Silbert, and a few months later, they sued Genesis too. They want back $1.6 billion in GBTC shares.
Then, Genesis turned things around and sued Gemini back, asking for $689 million that was taken out before they went bankrupt.
Genesis declared bankruptcy in January following the suspension of withdrawals in November 2022.