Aug 15, 03:16 PM

DCG Sues Genesis in Bankruptcy Court Over $1.1 Billion Note

Digital Currency Group has sued its own lending subsidiary, Genesis Global Capital LLC, in the U.S. Bankruptcy Court for the Southern District of New York, seeking judicial clarification over a $1.1 billion promissory note that DCG issued to Genesis in 2022 at the height of the crypto-market turmoil. The complaint, filed on 14 August, argues that portions of the note and related guarantees remain disputed liabilities as Genesis proceeds through Chapter 11 restructuring. The litigation is the latest twist in the post-collapse negotiations between DCG and creditors of Genesis, which filed for bankruptcy in early 2023 after heavy losses tied to the failure of several crypto platforms. DCG has previously said the 2022 note was intended to stabilise Genesis, but restructuring advisers have questioned the enforceability of the obligation. A separate count in the filing seeks recovery of roughly $105 million that DCG claims it paid in error under the contested agreement.

#Digital Currency Group #Genesis Global Capital LLC #DCG #Genesis

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DCG Sues Genesis in Bankruptcy Court Over $1.1 Billion Note

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