Genesis and DCG To End $620M Lawsuit with Repayment Deal

The post Genesis and DCG To End $620M Lawsuit with Repayment Deal appeared first on Coinpedia Fintech News

The crypto world continues to experience new daily developments – exciting ones! Genesis, a bankrupt crypto lender under Digital Currency Group (DCG), struck a significant deal aiming to settle a lawsuit seeking $620 million in repayments from DCG.

According to a November 28 court filing, DCG agreed to repay $324.5 million by April 2024, resolving part of the dispute. This agreement offers Genesis immediate benefits, avoiding prolonged litigation’s hefty costs and distractions. 

This move marks a critical step in Genesis’ efforts to reimburse creditors, pending their vote and approval from Judge Sean Lean. Genesis sought to reduce a claim against Three Arrows Capital from $1 billion to $33 million, highlighting a larger reorganization strategy.

Sailing on Complex Web of Lawsuits

However, Genesis recently filed a lawsuit against Gemini, the crypto exchange, seeking to recover nearly $670 million in transfers. This action unfolds amid an ongoing Securities and Exchange Commission lawsuit accusing Genesis and Gemini of selling unregistered securities. Additionally, New York authorities filed a lawsuit against Genesis, Gemini, and DCG, alleging investor fraud.

The bankruptcy filing by Genesis dates back to January, following a withdrawal suspension in November 2022. The recent agreement between Genesis and DCG is a significant move in their legal entanglements, offering potential resolution while navigating a complex web of lawsuits and financial restructuring. The court’s decision, contingent on creditor votes, will be crucial in ending this crucial chapter for Genesis and its parent company, DCG.

On the flip side, the lawsuit also charges Genesis, its former CEO Soichiro Moro, its parent company, DCG, and DCG’s CEO Barry Silbert with defrauding investors and the public by trying to conceal more than $1.1 billion in losses, which investors bore. While the NYAG lawsuit proves Genesis intentionally committed deception at the direction of its parent company, DCG

This development marks a critical moment in the complex world of crypto finance. What are your thoughts on the legal battles surrounding Genesis and DCG? Share your opinions!