DCG Confirms Full Clearance of $1 Billion in Debts to Genesis

The Digital Currency Group (DCG) has fulfilled its financial obligations by settling all short-term loans from Genesis, its bankrupt subsidiary. DCG has managed to clear over $1 billion in debt to various creditors in the past year, with a significant portion of nearly $700 million allocated to Genesis, meeting all current commitments.

Barry Silbert, DCG’s founder and CEO, expressed his satisfaction with the resolution, noting the repayment of around $700 million despite industry challenges. He looks forward to DCG’s continued leadership in the industry’s next phase.

Genesis, which halted withdrawals in late 2022, entered bankruptcy in early 2023. Later in September, Genesis pursued legal action against DCG for an outstanding loan due in May 2023, with DCG owing more than $1.7 billion in total debt to Genesis and others. Additionally, Genesis sought to recover around 4,550 BTC, worth about $199 million, though a repayment agreement was reached in November for $200 million.

Per the federal bankruptcy court’s approved plan, DCG is to resolve the remaining loan balance with Genesis by April 2024.

Regarding its ownership, DCG will keep its stake in Genesis during the bankruptcy process. The firm is required to hold at least 80% ownership until Genesis’ Chapter 11 plan is approved or converted to Chapter 7. This arrangement allows Genesis to benefit from DCG’s tax-consolidated group, potentially utilizing federal net operating loss carryforwards to offset future taxable income, which could be advantageous for up to $700 million in NOLs.

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