- DCG CEO Barry Silbert stressed that the company has met its loan obligations with Genesis.
- Genesis filed for bankruptcy in January 2023 after suspending withdrawals in November.
The short-term loans that Digital Currency Group (DCG) had with the now-defunct Genesis crypto lending platform have all been paid off, according to the venture capital company.
On January 6th, DCG verified in a statement posted on X (formerly Twitter) that it had paid all of its debts, including almost $700 million to Genesis, which was part of more than $1 billion paid to creditors last year.
Despite the Headwinds
Even if the cryptocurrency market was volatile in 2023, DCG CEO Barry Silbert stressed that the company nonetheless met its loan obligations.
Silbert stated:
“We have now repaid over $1 bn of debt, including this ~$700 mm, despite the headwinds faced by the industry.”
Moreover, as reported in November 2023, DCG had committed to paying back all of Genesis’s outstanding debts by April 2024. Genesis had sued DCG in September, seeking repayment of late debts totaling around $620 million; the transaction was an attempt to resolve that case.
After the crypto exchange FTX, run by Sam Bankman-Fried, collapsed, Genesis, a subsidiary of DCG, ran into financial difficulties. With Genesis’s debt of almost $1 billion, DCG assumed responsibility in November 2022.
Following the suspension of withdrawals in November 2022, Genesis filed for bankruptcy in January 2023. Some of the top 50 creditors, including VanEck’s New Finance Income Fund and Gemini, were owed more than $3.5 billion by the corporation.
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